Redeemable Tax Deed Overview

Understanding Redeemable Tax Deed

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What Are Redeemable Tax Deeds?

Redeemable tax deed, what it is, and how does it differ from a standard tax deed? Unlike a standard tax deed, where you get ownership right away. A redeemable tax deed gives the original owner extra time, called the redemption period. This is to reclaim their property by paying back the auction price plus a penalty or interest. If they redeem, you earn a profit from the penalty. If they don’t, you get full ownership of the property, often for much less than its market value.

How do Redeemable Tax Deeds Work?

Here’s how it goes: You attend an auction and win the bid. You now hold the deed to the property. But, the original owner has a set amount of time to pay you back. This period varies depending on the state, but it could be anywhere from six months to two years. If the owner redeems the property, you get your money back

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Understanding Redeemable Tax Deed

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