Welcome to another episode of Ask Al How. This video is part of my 51 part video series called Tax Sales Explained. In this video I will discuss the basics of Tax Sales in Our Nations Capital, District of Columbia.
This post features District of Columbia Tax Sales Explained, A video posted on YouTube on April 11, 2020.
District of Columbia Tax Sales Explained
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Washington DC Tax Sale Facts
Washington DC only has District of Columbia, so there are no counties. However, Washington DC is a lien state with a six month redemption period. Their auctions are held using the Premium Bid style and the interest rate is 18%. Perhaps the most important thing to note about Washington DC is that the premium above and beyond the beginning bid does not receive any interest. That means if you pick up a lien with a face value of thousand dollars and you bid up to 1500 only the first thousand is getting the 18% interest.
The auction is held in July and they do not allow over-the-counter sales and you also need to know that the deed is not self-executing. You are going to have to pay for title search and then file an action with the District of Columbia Superior Court in order to foreclose after the right of redemption has expired.
I rate Washington DC a 3 out of 5.
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.