Loudon County, TN Tax Sales: A Complete Guide for Buyers

Loudon County, Tennessee, holds tax sales to recover unpaid property taxes. When property owners fail to pay, the county auctions off these properties to collect what is owed. If you’re interested in bidding, this guide will walk you through the process, from registration to ownership.

How Loudon County Tax Sales Work

Tax sales in Loudon County follow a structured process, ensuring fair bidding and legal confirmation. Here’s what you need to know before participating. Check out our Auction Calendar for scheduled auctions

• In-Person Auctions Only – Tax sales take place at the Loudon County Chancery Court.

• Property Listings – A list of available properties is published online or at the Clerk & Master’s office before the sale. Listings include parcel numbers, property addresses, and tax amounts due.

• Starting Bids – The auction begins at the total amount due, including unpaid taxes, interest, penalties, and court costs.

• Bidding Process – Buyers place bids in person. The highest bid wins, but the Chancery Court must confirm all sales before they are final.

• Payment Deadline – Winning bidders must pay in full immediately using cash, money order, or certified check. No personal checks or installment payments are accepted.

• Redemption Period – The previous owner has up to one year from the court confirmation date to reclaim the property by paying all owed amounts, including interest and legal fees.

• Deed Transfer – If the owner does not reclaim the property, the buyer receives a tax deed and must record it at the Loudon County Register of Deeds Office.

• Title Clearance – Some properties require a quiet title action to ensure clear ownership before resale or development.

How to Participate in Loudon County Tax Sales

If you’re planning to bid, follow these steps to ensure you’re prepared for the auction.

1. Review Property Listings – Find available properties online or at the Clerk & Master’s office. Research tax records, liens, and property details before bidding.
2. Inspect Properties – Visit property locations, check tax maps, and confirm details. Interior inspections are not allowed. Evaluate property conditions and surrounding areas.
3. Register for the Auction – Arrive early on auction day to complete registration. Bring a W-9 form, valid identification, and any required deposits.
4. Attend the Auction – Arrive at the courthouse at the scheduled time. Listen to the auction rules before bidding begins.
5. Place Your Bids – Compete with other buyers. The highest bid must meet or exceed the starting amount. Set a maximum budget before bidding.
6. Complete Payment – Pay the full amount immediately. Loudon County does not allow installment payments. Failure to pay results in bid forfeiture.
7. Obtain Court Approval – The Chancery Court must confirm all sales before ownership is finalized. Buyers should track court updates regarding their purchase.
8. Monitor the Redemption Period – The original owner has up to one year to reclaim the property by paying all owed amounts, including penalties and interest. Avoid making major improvements during this period.
9. Check for Additional Liens – Some properties may have unpaid liens beyond delinquent taxes. Buyers should perform a title search before bidding.
10. Receive the Deed – If the owner does not reclaim the property, the county issues a tax deed. Buyers must file the deed at the Loudon County Register of Deeds Office to finalize ownership.
11. File for a Quiet Title – If necessary, file a quiet title action to remove potential claims from previous owners or creditors.
12. Follow Local Regulations – Buyers must comply with county building codes, permits, and land use restrictions before making improvements or attempting to resell.

What Happens After Winning a Property?

Winning a tax sale property comes with responsibilities. Buyers must be aware of legal steps and financial obligations before taking full ownership.

• Pay the Full Amount Immediately – The county requires full payment on auction day. No exceptions.

• Redemption Period Applies – The previous owner has one year to reclaim the property by paying overdue taxes, penalties, and fees.

• Legal Steps May Be Required – Buyers may need to file a quiet title action to establish full ownership rights.

• Evictions May Be Necessary – If the property is occupied, the buyer must follow Tennessee’s legal eviction process.

• Confirm Any Liabilities – Some properties may have unpaid utility bills or other debts that the buyer must clear. Contact utility providers to check for outstanding balances.

• Title Insurance May Require Legal Work – Buyers may need to complete additional legal steps before securing title insurance.

• Property Maintenance Responsibilities Begin – Buyers must maintain the property after the redemption period expires. Neglecting maintenance can lead to fines or code violations.

• Ownership Transfer Must Be Filed – Buyers must register the deed with the Loudon County Register of Deeds Office.

• Assess Long-Term Costs – Property repairs, maintenance, and tax obligations add to the total investment. Buyers should calculate these expenses before purchasing.

• Understand Market Conditions – Research property values, rental potential, and resale options before purchasing.

• Confirm Access to Utilities – Some tax sale properties may not have active utility connections. Buyers should check water, electricity, and sewer access before investing.

• Plan for Future Use – Buyers must decide whether to hold, rent, or sell the property. Understanding restrictions and market trends helps with planning.

Important Things to Know Before Bidding

Before bidding, ensure you understand the risks and responsibilities involved in purchasing tax-delinquent properties.

1. All Sales Are Final – Refunds are not available once a bid is placed.
2. Properties Sell ‘As-Is’ – The county does not guarantee property condition, title status, or legal access.
3. Check for Liens – Some properties may have additional debts beyond delinquent taxes. A title search can reveal potential risks.
4. Extra Fees May Apply – Buyers must cover court costs, legal fees, and title clearing expenses.
5. Research Is Essential – Confirm property ownership, condition, and any legal concerns before bidding. Due diligence prevents costly mistakes.
6. Winning a Property Does Not Mean Immediate Ownership – The redemption period must expire before full control is granted.
7. Legal Advice Is Recommended – A real estate attorney can help with title issues and legal requirements.
8. Future Tax Payments Are Required – Buyers must pay future property taxes to keep ownership. Failure to do so may result in another tax sale.
9. Check Neighborhood Factors – Research property values, local infrastructure, and restrictions before bidding.
10. Be Prepared for Additional Costs – Some properties may require repairs, legal fees, or back utility payments.
11. Secure Insurance and Permits – Buyers should obtain insurance and necessary permits before making improvements.
12. Have a Long-Term Plan – Whether holding, flipping, or renting, buyers should have a clear investment strategy before purchasing.

Useful Links

• Auction Calendar
• Why Tennessee Tax Sales Are a Smart Investment Choice
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Get Ready for the Next Auction!

Don’t miss out—check our auction calendar. Go ahead and Book a call with our experts and use our free resources to gain an edge. Smart investors prepare early!

Sign up or log in to view the full content.