MArket data Analysis: Tax deed, Tax Lien, and redeemable deeds activity In local markets

Arkansas

Arkansas's tax deed sale activity has shown notable volatility over the past four years, with significant year-to-year fluctuations in both volume and value. The standout year was 2022, when deed sales spiked to 17,279 parcels and generated over $17.4 million in total sales—more than five times the dollar amount recorded in 2021. However, this surge was not sustained, as volume and revenue dropped sharply in 2023 and 2024, stabilizing around 6,300–6,500 parcels and just over $6.5 million in value per year.

These swings may reflect shifting backlogs in parcel availability, changes in auction policy or timing, or efforts to clear out previously unsold properties during the post-COVID adjustment period. With 72–79 counties participating annually, Arkansas has demonstrated broad geographic coverage, although the consistency of parcel flow remains less predictable compared to lien states like Indiana.

As a deed state, Arkansas transfers full ownership of the property at sale—making it a higher-risk, higher-reward environment where due diligence is critical. The relatively low dollar amounts per parcel suggest opportunities for investors seeking inexpensive entry points into fee-simple real estate, particularly in rural and distressed markets. That said, the success of future investment depends heavily on county-level execution, title clearance procedures, and on-the-ground resale or renovation strategies.

Indiana

Indiana continues to stand out as one of the most consistent and robust tax lien sale markets in the country. Over the past four years, all 91 counties have participated annually, underscoring the state's comprehensive and statewide commitment to the lien sale process. The number of parcels offered each year has remained remarkably steady, ranging from approximately 30,151 to 33,215, signaling ongoing delinquency trends and strong pipeline continuity for investors.

Despite the stability in sale volume, the total dollar amount of liens sold has seen a gradual decline—from a high of $243 million in 2021 to around $215–218 million in the most recent two years. This reduction likely reflects a mix of lower average lien amounts, changes in assessed property values, or increased redemptions prior to sale, but not a contraction in market opportunity. Notably, even with this decline, Indiana still offers one of the highest total dollar volumes in the U.S. for tax lien auctions, providing ample opportunity for institutional and individual investors alike.

Indiana's lien sales are further supported by a well-established statutory framework, offering a fixed interest rate and predictable redemption period. The standardized process across counties adds operational efficiency and reduces uncertainty for out-of-county or out-of-state participants. Coupled with a mature ecosystem of service providers, Indiana remains a top-tier state for both entry-level and seasoned lien investors seeking scale, regularity, and legal clarity.

South Carolina

South Carolina's redeemable deed market is experiencing a significant upward trend, both in volume and monetary value.

While the number of delinquencies increased from 2021 to 2023, the substantial rise in value is primarily attributed to higher tax assessments. These increased tax amounts reflect the widespread property value appreciation observed across numerous states in recent years.

​This trend underscores the dynamic nature of the real estate market and its impact on tax lien investments in South Carolina.

Colorado

The aggregate value of tax liens has experienced a modest uptick over the past year, though this increase falls within the realm of normal market fluctuations.

​This subtle rise can be primarily attributed to the statewide appreciation in home values, which has subsequently led to higher property tax assessments. It's important to note that this increase in aggregate value does not necessarily indicate a surge in delinquencies.

tennessee

Tennessee presents an intriguing anomaly in the tax lien landscape.

Despite a slight decrease in the number of delinquent properties from 2022 to 2023, the aggregate value has also declined. This unusual trend suggests that, unlike many other states, property taxes on delinquent properties in Tennessee have not increased.

​The continuation of this pattern will be a noteworthy development to monitor in the coming years.

Florida

In Florida, the number of properties sold at tax deed auctions typically corresponds to the tax lien certificates sold two years prior, due to the state's minimum redemption period.

Over the past decade, these numbers steadily declined until 2020, when COVID-19 disruptions caused a disconnect. An uptick in 2021 was mainly due to catching up from the 2020 disruptions, and by 2022 the declining trend continued as expected.

​However, 2023 saw an increase in tax deeds, aligning with the rising trend of tax lien certificates sold in recent years. This trend suggests potential increases in 2024 and 2025.

Michigan

The past five years in Michigan have been unusual. The quantity of tax deeds remained steady until a sharp decline in 2020 due to COVID-19 disruptions. The numbers rebounded in 2021 and have been increasing steadily. Notably, the dollar value of properties sold dropped significantly from 2022 to 2023, likely due to improving economies in Detroit and surrounding areas.

Historically, counties with excess blighted properties chose higher value properties to sell, but a combination of less inventory and lower value properties has led to a decline in dollar value. The trend of increasing quantities of properties going to tax sales is expected to continue.
To access more detailed data, visit Tax Sale Resources.

Hot Topic: ​Understanding Property Tax Foreclosures, Judicial vs. Administrative

Navigating the world of property tax foreclosures can be intricate, especially for tax deed investors. One of the key distinctions to grasp is the difference between judicial and administrative (or non-judicial) foreclosures. Both processes aim to resolve unpaid property taxes, but they operate differently, and the details vary greatly depending on the state*. Here we break down the essentials, helping you make informed investment decisions.

What is Property Tax Foreclosure?
​When a property owner fails to pay their property taxes, the government may initiate a foreclosure process to recover unpaid taxes. For tax deed investors, this process can open opportunities to acquire properties at potentially undervalued prices.
 
*For additional reference, take a look at this article from R.E. Tipster that provides a comprehensive list of the Judicial and Non-Judicial states in the US: https://retipster.com/judicial-non-judicial-foreclosure-states-list-map/.

​Key Differences of Each Process
TOPIC
JUDICIAL
ADMINISTRATIVE
Costs
More expensive, widely variable, with limits of recovery
Less expensive, costs normally recoverable
Foreclosure Period
Widely variable, subject to court docket
Expedited upon notification
Incentives
May not be cost-effective to foreclose on low balance liens
Foreclosure on more low balance liens
Title
May require taking title to the property
May not require taking title to the property
Marketable Title
Quiet title not required
May require quiet title
Legal
Required local legal representation
No need for legal representation
Tax Sale
Service may need to manage sale
Liquidations conducted by local government or third party
Comparison table provided during an NTLA Webinar. Visit NTLA Events for more information.
Which is Better for Tax Deed Investors?
Both judicial and administrative/non-judicial foreclosures present unique opportunities and challenges for tax deed investors. Here’s a few things to consider:
  • Judicial Foreclosure:
    • Best For: Investors who prioritize legal certainty and transparency.
    • Considerations: Be prepared for a potentially longer and more expensive process.
  • Administrative Foreclosure:
    • Best For: Investors looking for a quicker and cost-effective acquisition.
    • Considerations: Ensure due diligence to mitigate risks associated with less oversight.
 
Tips for Tax Deed Investors
  1. Research Local Laws: Foreclosure processes vary by state and locality. Understanding the specific laws in your target area is crucial.
  2. Perform Due Diligence: Investigate the property thoroughly, including any liens or encumbrances that might affect its value.
  3. Budget for Costs: Factor in all potential costs, including legal fees, repairs, and holding costs.
  4. Network with Professionals: Building relationships with local real estate attorneys, tax collectors, and other investors can provide valuable insights and support. Consider joining associations like the NTLA to stay informed.
 
Conclusion
Understanding the differences between judicial and administrative/non-judicial foreclosures is essential for tax deed investors. Each process has its advantages and drawbacks, and the best choice depends on your investment strategy and risk tolerance. By staying informed and performing thorough due diligence, you can navigate the property tax foreclosure landscape with confidence and maximize your investment opportunities.
 
Happy investing!

Hot Topic: ​Navigating the World of Tax Lien Certificates and Tax Deeds

Investing in the real estate industry comes with a variety of options. Two such options that have gained significant attention among investors are Tax Lien Certificates and Tax Deeds. We aim to shed light on these two concepts and help tax deed investors make informed decisions. 

Understanding Tax Lien Certificates 
A Tax Lien Certificate is essentially a claim against a property due to unpaid property taxes. When property taxes become delinquent, the government auctions off a lien certificate to the highest bidder. This certificate gives the investor the right to collect interest on the delinquent property taxes. In essence, the investor is loaning money to the property owner to pay their tax debt. Over time, this investment could potentially become a superior lien, taking precedence over other liens placed on the property after the tax sale. 

Delving into Tax Deeds 
On the other hand, a Tax Deed allows an investor to purchase a property outright. This method is typically used as a means to profit from tax-delinquent real estate. When a property owner fails to pay their taxes, the government can sell the property itself, rather than just the lien. The investor then pays the delinquent taxes and in return, receives the property deed. This method transfers the ownership of the property with delinquent taxes to the new owner. 

Tax Lien Certificates vs Tax Deeds: A Comparison 
While both Tax Lien Certificates and Tax Deeds offer lucrative opportunities for real estate investors, they come with different risks and rewards. Tax Lien Certificates typically involve less risk as the investor does not own the property but has the right to collect the delinquent taxes along with interest. However, the process can be lengthy and the investor does not have control over the property. 
In contrast, Tax Deeds offer the investor direct control over the property, as they become the new owner once the deed is purchased. Although this comes with higher risk, it also allows for greater potential profits, especially if the property's value increases over time. 

Conclusion 
In the end, the decision between investing in Tax Lien Certificates and Tax Deeds depends on the individual's risk tolerance, investment goals, and market knowledge. Both offer unique opportunities to profit from the real estate market and with careful consideration and due diligence, can form a part of a well-diversified investment portfolio. As always, it's recommended to seek professional advice when venturing into new investment territories. 
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