Tax Deed Investing: What is an “Upset” Sale?

In Pennsylvania, some counties have two different taxnarrowed this down to only two properties that I
sales; the "upset" sale, and the "judicial" sale. If tax salewanted to bid on. I did all of my research the day
properties are not sold at either of these two sales,before the sale and I had checked that morning to
the property then goes on the "repository" list and canmake sure that all of these properties were still in the
be sold by private bid. The upset sale is held everysale. But by the next morning (the morning of the sale)
year in the fall. It's called an "upset" sale because thethe two properties that I was interested in had paid
minimum bid for the properties in this sale is known asand were no longer included in the sale. I'm glad that I
the "upset" price; which includes any unpaid taxes fromdid my own research and did not pay a title company
the county as well as any municipal liens. If a propertyto do it!That brings us to the second method for finding
is not sold in this sale, it is sold in the "judicial" tax sale inout about liens and judgments on tax lien properties,
the spring. Not all Pennsylvania counties have judicialand that is to do it yourself. There is a little bit of
sales but they all have an upset sale.What you mayeducation and some time involved, but it is well worth it.
not know about the upset sale is that all properties areIn most states, to do this type of research you would
sold subject to any liens or judgments. That meansgo to the County Hall of Records. In Pennsylvania the
that if you purchase a tax deed at this sale, you areoffice that has the records that you need to search is
responsible for any other unpaid liens or judgments onthe office of the Prothonotary. The people in this office
the property. Most people assume that when they buyare usually very helpful and will help you to look up
a property at a tax sale, that they don't have to worrywhat you need to know. You'll have to look for liens
about other liens such as a mortgage. This is not trueand judgments by the name of the owner. If there are
at the upset sale. If you plan on bidding at any of theseco-owners or joint owners, you will want to search
sales this fall, you'd better do your homework!So howunder both names.Keep in mind, however, that if new
do you find out about other liens or judgments on taxliens were not yet recorded they could slip through the
sale properties? There are two ways that you couldcracks in the system and you won't be able to find
do this; one is going to cost you some money and thethem. There is always some degree of risk when you
other is going to take some of your time. The firstbuy a tax deed, even if you are careful and do your
way is to hire a title search company to do a simplehomework. This is why it is always recommended that
title search on all of the properties in the sale that youyou do not buy tax deeds in your own name, but in the
are interested in bidding on. This could turn out to be aname of a separate entity. It could be a corporation or
little costly, so it's not my method of choice. Anotheran LLC. If you need help forming a corporation or LLC
reason why I don't hire a title search company to dofor the purpose of buying tax deeds, I know of two
title searches for me before the sale is that many ofexcellent programs to help you. They were both
the properties will come off the sale list the day beforecreated by Darius Barazandeh, Texas attorney and
or the morning of the sale. You may pay for a fewtax deed expert. You can find out more about these
title searches that you don't even need because theprograms, Incorporate for Wealth, and The Wealth
properties that you wanted to bid on are not sold atBuilding LLC on the resources page of Joanne Musa is
the sale.Today I went to the Monroe County Upseta Tax Lien Investing Coach and Consultant who
Sale. I didn't even bid on any properties. I researchedworks with investors who want to learn how to buy
about 10 of the properties in the sale that were in anprofitable tax lien certificates and tax deeds.
area that I was interested in. Through my research I