In Florida, tax deed sales are conducted via auction by the Clerk of the Circuit Court at the courthouse of the county where the property is located. Tax deed sales are advertised weekly in local newspapers and online. Typically, a property is sold for the unpaid tax amount, plus interest and fees.

Does a tax deed sale wipe out a mortgage in Florida?

In Florida, if taxes on a parcel of land are not paid, the tax collector may sell a tax certificate on the parcel at public auction. If proper notice is given, the sale of a tax deed will extinguish all mortgages, except those held by the Federal Department of Insurance Corporation.

What happens to a mortgage in tax deed / lien sales?

Any money paid by buyer that is above and beyond what is due to the county to pay for the taxes is paid to the various lien holders, which generally includes the mortgage company in the first position. Once the sale of the property has occurred the bank can seek to obtain any additional money that is due from the original property owner.

What does it mean to sell property with a tax deed?

A tax deed gives the government the authority to sell the property to collect the delinquent taxes and transfer the property to the purchaser. Such sales are called “tax deed sales” and are usually held at auctions.

What does a tax certificate or tax deed do?

The successful bidder at this auction is issued a Tax Lien Certificate, which ensures the bidder that the Tax Lien will be paid off, with interest. A tax lien certificate, or tax certificate is not a purchase of property; rather, it is a lien imposed on the property by payment of the delinquent taxes.

Who is notified of a tax deed sale?

The legal titleholder of record and all lienholders, including mortgage companies must be notified of the tax deed sale. In certain cases others must also be notified.