Looking to buy Mississippi tax lien certificates? It’s a tough place to buy tax liens unless you live or know the state well. Most of the liens are on low dollar properties or land parcels. The legal system totally sides with the taxpayer. But, it’s a great interest rate and you won’t be competing with large banks or investment funds in the state. It might be worth your time to get down there for the next auction if you’re frustrated with the low rates of the online auctions in other state.
The average lien size is very small — usually a few hundred dollars. This is because of a combination of low tax rates and lower property values. This is another reason your larger corporations stay away from buying here creating a very good place for the individual tax lien investor to buy tax lien certificates.
Find out details below including my opinion of what are the best counties, what you can earn, and other helpful links:
Overview of Mississippi Tax Lien Certificates:
Mississippi Auction Type: Live, open-outcry auction
Mississippi Statutory Interest Rate: 18%
Date of Auction(s): Last Monday of August
Overbid State/Type: Yes/Non-Refundable
Mississippi Redemption Period: Two Years
Mississippi Subsequent Taxes: Available at auction. Not required to purchase.
Mississippi Tax Lien Foreclosure Process: Request Deed, File Confirmation Suit (Quiet Title)
Mississippi Tax Lien Attorney Required? No, unless filing for confirmation/quiet title.
Largest/Best Auctions in Mississippi:
- Hinds County, MS (see Hinds County Tax Collector)
- Harrison County, MS (see Harrison County Tax Collector)
- De Soto County, MS (see De Soto County Tax Collector)
Resources / Links:
- My website about tax lien investing
- Mississippi Tax Lien Statutes: Title 27, Chapters 41-47
Advantages of Mississippi Tax Liens:
- Small Liens – average $300 or so (attracts smaller investors, fewer institutional buyers)
- Good Interest Rate – 18%
- Limited Competition – county tax lien auctions held all on same day
Disadvantages of Mississippi Tax Liens:
- Strict compliance to noticing required – frequently tax sales are overturned
- You are on the chain of title – you could be liable for environmental issues
- Courts hold to ‘caveat emptor’ with tax lien investors – You will probably lose if someone challenges the tax sale
Want to learn more about investing in Mississippi tax liens? Visit me on my blog about investing in tax lien certificates! Or, follow me on Twitter by clicking here: