Earn High Returns: 18% ROI from Mississippi Tax Liens

Sale Details

Mississippi Tax Lien – Yearly in August or April

Redemption Period

2 Years

Interest Rate / Penalty

18%

Bid Procedure

Ownership Interest Bid Down

Online Auction

Yes, but only a few

Number of Counties: 82

Useful Links

Mississippi Department of Revenue

What Are Tax Liens in Mississippi?

Mississippi is a tax lien state. This means that if a property owner doesn’t pay their property taxes, the county steps in and sells a lien on the property to an investor like you. As an investor, you’re not buying the property itself. Instead, you’re buying the right to collect the overdue taxes plus interest from the property owner. This can be a great way to earn money without taking on too much risk.

How Tax Lien Sales Work in Mississippi

What You’re Buying:

○ In Mississippi, you’re buying a Tax Lien Certificate. This certificate gives you the right to collect the unpaid taxes, along with interest.

How Bidding Works:

○ Mississippi uses an overbid system. This means the person willing to pay the most money for the lien wins. Keep in mind, though, that the extra money you bid over the lien amount doesn’t earn interest, so you’ll need the interest from the lien itself to make a profit.

Interest Rate:

○ Mississippi offers a solid 18% interest rate per year on the lien amount. That breaks down to 1.5% per month.

Time to Pay:

○ The property owner has two years to pay you back. If they pay, you get the money you invested plus interest. If they don’t, you could end up with the property by applying for a deed.

When It Happens:

○ These sales usually happen once a year, either in April or August.

Why Mississippi is a Good Place to Invest in Tax Liens

1. High Returns:
   • With an 18% interest rate, you can earn a lot more than you might with other investments.
2. Lower Risk:
   • The risk is generally lower since you’re buying a lien, not the property. Plus, most property owners eventually pay their taxes, meaning you’ll get your money back with interest.
3. Stable Market:
   • Mississippi has a stable real estate market, and the rules around tax liens are clear and easy to follow. This makes it a good choice for investors.

How the Auction Process Works

○ In-Person Bidding: Most auctions in Mississippi are held in person, but some counties are starting to offer online bidding too. Make sure to register ahead of time, and be prepared to show that you have the money to bid.

○ Overbidding: Remember, you might have to pay more than the lien amount to win. This extra amount won’t earn you interest, so bid wisely.

○ Plan Ahead: Auctions can take a while—sometimes even a few days—so be ready for a bit of a time commitment.

Important Things to Know

1. No OTC Sales:
   • Mississippi doesn’t offer over-the-counter sales for tax liens. If a lien doesn’t sell at the auction, it usually goes back to the state.
2. State Handling of Unsold Liens:
   • If a lien doesn’t sell, the state might take it over. Sometimes, these unsold liens can be purchased directly from the state later on.

FAQs About Mississippi Tax Lien Investing

Can anyone join in Mississippi tax lien auctions?

• Absolutely! Whether you’re from Mississippi or another state, you can participate. Just be sure to register ahead of time and have proof that you can pay.

What if the property owner doesn’t pay back the lien?

• If the owner doesn’t pay within two years, you can apply to get the property through the Chancery Clerk.

Are Mississippi tax liens a safe investment?

• Yes, they are generally considered safe because the process is well-established, and most owners do pay off their liens.

Why Mississippi is a Great Place for Tax Lien Investors

Mississippi’s tax lien process is straightforward and offers high returns with less risk, making it a smart choice for investors. With clear rules and a good interest rate, investing in Mississippi tax liens can be a great way to grow your money.

Take the Next Step

Ready to explore Mississippi tax lien investing? Click here to learn more and start your journey toward financial success. Need help? We’re here for you—book a consultation today!