How Whatcom County, Washington Conducts Tax Sales: A Step-by-Step Guide

Whatcom County, Washington, holds an annual tax foreclosure auction to recover unpaid property taxes. These auctions help the county collect overdue taxes and give property owners time to resolve their debts. Here’s everything you need to know about the process, whether you’re a property owner or a potential buyer.

What Happens When Taxes Are Unpaid

When property taxes remain unpaid for three years, Whatcom County starts the foreclosure process. Here’s how it unfolds:

• Three-Year Grace Period: For example, taxes from 2021 must be paid by January 2024 to avoid foreclosure.

• Notices Sent: The Treasurer’s Office notifies property owners about their overdue taxes and explains how to prevent foreclosure.

• Interest and Penalties: The unpaid balance grows with added interest and penalties until the taxes are fully paid.

Check out our Auction Calendar for scheduled auctions.

The Foreclosure Process

The foreclosure process begins with a legal filing:

1. Certificate of Delinquency:
   
   The Treasurer’s Office files this certificate with the Superior Court to officially start foreclosure proceedings.
2. Full Payment Required:
   
   To stop the foreclosure, property owners must pay the total amount of taxes, interest, penalties, and fees. Partial payments or payment plans are not allowed.
3. Auction Eligibility:
   
   If the taxes remain unpaid, the property becomes eligible for auction.

Preparing for the Auction

Whatcom County conducts its tax foreclosure auction online, usually in November. Here’s how to get ready:

1. Auction Platform:
   
   The auction takes place on Bid4Assets, an online platform.
2. Property Listings:
   
   The county publishes a list of properties weeks before the auction. Listings include:
   Parcel numbers
   Property addresses
   Starting bid amounts
3. Registration Requirements:
   
   Buyers must register on Bid4Assets, pay a $2,000 refundable deposit, and a $35 non-refundable processing fee.
4. Clear Rules:
   
   The county provides auction terms and payment requirements to ensure buyers are fully informed.

The Auction Process

The auction itself is straightforward and fully online:

1. Starting Bids:
   
   Bidding starts at the amount needed to cover all unpaid taxes, interest, penalties, and foreclosure costs.
2. Winning the Bid:
   
   The highest bidder wins the property. They must pay the total amount by the deadline specified in the auction terms.
3. Payment Details:
   
   Payments are made electronically through Bid4Assets. A 4% buyer’s premium is added to the final bid amount.

After the Auction

Winning bidders take ownership of the property, but there are important details to consider:

• Transfer of Ownership: Winning bidders receive a Tax Deed that transfers ownership.

• No Guarantees: The deed does not guarantee the property’s condition or legal status. Buyers assume all risks.

• Unsold Properties: Properties that don’t sell at the auction become tax title properties. The county may offer these in future auctions or sell them privately.

What Buyers Should Know

Before participating in a tax foreclosure auction, buyers should be well-prepared:

• Do Your Research: Investigate the property’s legal status, liens, physical condition, and usability.

• Understand Risks: All properties are sold “as is.” Sales are final, and buyers must accept any associated risks.

• Know the Rules: Familiarize yourself with the auction terms, rules, and payment deadlines to ensure a smooth transaction.

Tips for Buyers

1. Start Early:
   
   Register on Bid4Assets and review property listings as soon as they’re available.
2. Financial Preparedness:
   
   Ensure you have funds ready for the deposit, final payment, and buyer’s premium.
3. Expert Advice:
   
   Consult with a tax sales expert if you’re new to the process or need guidance.
4. Property Inspection:
   
   Visit or research the property to understand its condition and any potential liabilities.

Useful Links

• Auction Calendar
• Investing in Washington Tax Sales
• Let’s talk about Tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Need a Hand?

Check out our Auction Calendar for upcoming auctions. Don’t miss out on the upcoming tax sale!

If you need more guidance or have questions about participating in tax sales, book a call now to connect with an expert who can help you navigate the process.

You can also check out our free resources to find answers to your questions and get tips for making informed investments.

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