Missouri Tax Liens

If you’ve purchased a Missouri tax lien at an auction, or are considering bidding on one, you may be wondering what happens next. We can help.

Almost all Missouri counties, other than Jackson County and St. Louis City, sell tax liens. This means that when you bid at a Missouri tax auction, you are not buying a deed to the property, instead you a buying the right to collect the tax amount from the property owner. You have no actual right to possession at that point. If the original property owners are still living in the home, you cannot evict them. You also can’t enter on to the property itself. Remember, you don’t actually own the property! You only own the tax lien.

After the auction, the county will give you a Certificate of Purchase, which you can exchange for a deed one year later if you follow certain procedures. This one year period is called the “redemption period” during which time the record owner of the property can “redeem” the property by reimbursing you the amount you paid plus costs and interest.

As a tax lien purchaser, you are also responsible for giving notice to the property owners. Missouri statute sets out the notice requirements. You will also need to file an affidavit confirming that you’ve followed this process.  Contact us as soon as possible after the tax sale for help meeting the statutory requirements.

At the end of the year, assuming the property owner hasn’t redeemed their property, and you’ve followed the statutory procedure, you can exchange your Certificate of Purchase for a Collector’s Deed. The Collector’s Deed is what gives you rights to the property. Once you have it, the property is yours to change or improve as you wish.

Whatever plan you have for your tax sale property, Title Bridge can help you secure your investment. Title insurance companies typically won’t insure a property that’s gone through a tax sale, but we can Bridge that gap.

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