BidLakeTax Frequently Asked Questions Frequently Asked Questions Lake County Tax Certificate Sale Basics | The Tax Certificate Sale | Using the Auction Site | Tax Certificates | Tax Deed Applications BASICS What is a tax certificate? A tax certificate is a first lien against real estate (not the owner) and becomes the basis upon which a tax deed application is filed. The tax certificate sale is NOT a sale of real property, nor does a tax certificate give the certificate holder a direct means to acquire a property. According to Florida Statute 197.432 (13) The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until 2 years after April 1 of the year of issuance of the tax certificate. It is your sole responsibility to research any tax lien certificates you intend to buy. You can see additional property and tax information for any item by clicking on the Account or Parcel Number on the auction web site. Research any advertised items carefully before submitting bids. There are potential risks associated with tax certificate purchases. All purchases in the tax certificate sale are final. When does the tax certificate sale take place? The sale opens in early to mid May and starts to close on or before June 1. All activity related to registration, bidding, payments and certificate assignment takes place on the auction website. In early to mid-May each year: Delinquent taxes are advertised in accordance with Florida Statute 197.402. Registration and bidding on LienHub.com begins (submit W-9 forms, pay deposits, bidder numbers are assigned, begin submitting bids). On, or before, June 1: Bid submission ends Sale results are generated For exact dates, please see the AUCTION SCHEDULE. How do I register for the sale? Any bidder who intends to participate in the sale must perform the following steps via the auction web site: Obtain a User ID and password for the web site by clicking the "Sign In" link at the top left of the page, then clicking the "Create A User" button and completing the required form. Submit an IRS W-9 form. Submission and/or modification can occur only while the sale is open. Bidder numbers will be assigned once this form has been successfully submitted. (See note below.) Set a budget amount (the maximum amount you are willing to spend in the sale) Pay a deposit of at least 10% of your anticipated purchases. NOTE: A Social Security number (SSN) or employer identification number (EIN) must be provided for each bidder and must belong to the person listed on the IRS form. This information is treated as confidential; for further information please review the Privacy Policy located within the Documentation section of LienHub. The Tax Collectors office will perform a verification process via the IRS website for all tax identification numbers submitted. The tax certificate list, redemption checks and interest earnings will be issued exactly as indicated on the form(s). How do I submit my bids? Bids can be submitted on the Bid page individually, as a group (using a saved list), or via a file upload. All steps necessary for registration must be completed before bids can be submitted. How do I pay for certificate purchases? Payment must be made by ACH. The balance due for your purchases will be automatically debited from the bank account you designated as your "Final Payment Account" at the designated Final Payment Deadline. If you wish to manually make your payment prior to the Final Payment Deadline, please go to the "Payments and Budget" page under "My Account" and click "Pay for Certificates". The button is activated once the last batch in the sale closes and any final data updates are complete. The deadline to pay is listed on the Auction Schedule . Any bidder who fails to make payment by the deadline will forfeit their deposit and certificates will be re-sold or struck to the county at the discretion of the Tax Collector. What is an ACH debit? An ACH debit is an electronic payment from your checking or savings account. When you enter your bank account information and submit payment on the auction web site, you are authorizing the Tax Collector to debit your account for the amount you indicated. All payments are sent for processing immediately. Additional information is available on the page where you authorize payment. Funds must be drawn from a US financial institution. Some types of money market, brokerage, and/or trust accounts cannot accept ACH debits. Please check with your financial institution prior to initiating payment on the auction web site. THE TAX CERTIFICATE SALE top What is the auction process? Certificates are sold in the order they are advertised. Bidding begins at 18 percent (18%), the maximum rate, and interest is bid down in decrements of 1/4 percent (0.25%). Each certificate is sold individually to the bidder offering the lowest interest rate. In the case of a tie at the lowest rate, the winner will be selected using a random number generator in the auction software. Items that receive no bids are struck to the county to become county-held certificates. Bids are accepted at 0 percent (0%), but certificates awarded at this rate WILL NOT accrue interest. Bids at 0% will not be treated as proxy bids. Is there a cost to participate? There is no cost associated with registering on the website. If you intend to bid, payment is necessary for a deposit and to pay the balance due for any certificates awarded to your bidder number. Is there a registration deadline for the sale? Any person who intends to participate in the Lake County tax certificate sale must complete the sale registration process by the deadline stipulated on the Auction Schedule page. What is a batch? A batch is a subgroup of the list of auction items. The list is divided into batches to make the bidding process more efficient, and enable participants to manage their bids and budgets. Do I have to bid on all the items in a batch? No. Each tax certificate in each batch is auctioned independently of every other tax certificate. What happens to my security deposit if I don't win any certificates? The Tax Collector will issue refunds approximately two weeks after the close of the sale. Refunds of ACH payments will be made electronically to the account you used to submit the deposit. You will receive an email confirmation when the refund is initiated. Will the Tax Collector send me a paper certificate or list of certificates after the sale? No. Tax certificates are recorded and maintained electronically. Bidders can review and download a list of purchased certificates from the auction website by following these steps: Log in to the auction web site Enter the relevant tax certificate sale Click on the Results tab Select "All Certificates" from the Certificate Lists menu Select "All Batches" from the Batches menu Select your buyer number from the Bidder menu Select "Winning Bids" from the Results menu Check "Hide Removed Certificates" After completing these steps you will see a list of your purchases. You can download the list in Excel or comma-separated values format (CSV) by clicking the icons on the right-hand side of the page above the list of certificates. USING THE AUCTION SITE top What if I forget my password? Click "Forgot your password?" on the Sign In page. Answer a few questions and the system will send you a temporary password via email. What if I forget my User ID? Click "Forgot your User ID?" on the Sign In page. Answer a few questions and the system will send your User ID via email. What is Proxy Bidding? In a live auction, bidders lower their bids by 1/4 percent (.25%) decrements until they are the only bidder left or until the interest goes below their acceptable minimum level, at which point they would drop out. Proxy bidding is a form of competitive sale in which bidders enter the minimum interest rate they are willing to accept for each certificate. The auction system acts as an electronic agent, submitting bids on behalf of each bidder until their minimum bid rate is met. Using the proxy system, the electronic agent keeps lowering your bid by 1/4 percent (0.25%) decrements until you are either the only bidder left (in which case you get the certificate at 1/4 percent lower than the previous bid), or until you reach the floor you have set. 0 percent bids (0%) will not be treated as proxy bids. They will be awarded at 0%. If you are the only bidder on a given certificate and your minimum rate is greater than 0 percent (0%), the electronic agent will submit a bid of 18 percent (18%) on your behalf. In the case of a tie at the winning bid rate, the system awards the certificate to one of the tied bidders through a random selection process using a random number generator. In no case will a bidder be awarded a certificate at a rate lower than their specified minimum acceptable rate. Certificates that receive no bids after all batches are closed will be struck to the County at 18 percent (18%). Does my budget amount limit the number of bids I can submit? No. An unlimited number of bids can be submitted regardless of your budget amount. However, you will not be awarded an item if the award would cause the value of your purchases to exceed your budget amount. Is my budget amount automatically 10x my deposit amount? No. The maximum allowable budget you can set is 10x your deposit amount, but you have to enter what you want your budget to be. You can modify your budget any time before the end of the sale, as long as you have at least 10 percent (10%) of that amount submitted as your deposit. Where can I find sale results? Results can be viewed by logging in to the auction website, entering the auction and clicking on the Results tab in the upper right-hand part of the page. Clicking on the winning bid for any certificate will display a list of all submitted bids in a new window. What equipment or software do I need to be able to participate? In order to use the auction website, you will need an internet connection and modern web browser with JavaScript and cookies enabled. Google Chrome, Mozilla Firefox are some of the freely available browsers. If I have a question about how to use the web site, who do I contact? Contact Grant Street Group by email at [email protected], or by phone at (866) 247-4370, between 8:00 a.m. and 5:00 p.m. EST, Monday through Friday. TAX CERTIFICATES top How do I receive redemption funds? When a certificate has been redeemed, the certificate holder is entitled to the face value plus whatever interest the certificate has earned. Certificates are redeemed when the owner, title company or mortgage company pays the outstanding taxes, or when the holder of a certificate on the same parcel (from a different tax year) redeems it as part of a tax deed application. Redemption proceeds are remitted to certificate holders by the Tax Collector. The certificate holder is never paid directly unless it is from a Bankruptcy Trustee. If that happens, you must notify the Tax Collector when you are paid in full and request that the certificate be canceled. Can I pay the taxes and own the property? NO. You have not purchased property. A tax certificate purchase does not convey any property rights or ownership to the certificate holder. Can an interest rate be changed after the sale? The following circumstances could result in an interest rate other than the rate awarded in the sale: In accordance with Florida Statute 197.472(2), mandatory minimum interest of an absolute 5 percent (5%) will be levied upon the face value of certificates redeemed when the interest earned on said tax certificate is less than 5%. This applies to all county-held and individual tax certificates except those with an interest rate bid of 0 percent (0%). In accordance with Florida Statute 197.432(11), any tax certificates that are canceled, corrected or amended pursuant to statute, earn interest at the rate of 8 percent (8%) per year, simple interest, or the rate of interest bid at the sale, whichever is less. Interest can be affected by related judicial proceedings. Can a certificate be canceled or reduced? A certificate could be canceled or corrected as set forth in Florida Statute 197.443 and 197.444. The Tax Collector reserves the right to cancel or correct certificates issued in error. How do I transfer a tax certificate? Certificates can be transferred by completing an endorsement form and paying the applicable fees through the Tax Collectors office. When are county-held tax certificates available for purchase? County-held tax certificates, other than those with homestead real estate under $250.00, may be purchased after the close of the tax sale. The Lake County Tax Collector uses LienHub to facilitate sales of county-held certificates. What is the life of a tax certificate? The statute of limitation on a tax certificate is seven years from the date of issuance. If application for tax deed has not been made, and no other administrative or legal proceeding exists, the tax certificate is null and void. TAX DEED APPLICATIONS top What is a tax deed for Florida purposes? A tax deed is a title deed issued by a public authority to the purchaser of property sold for the non-payment of taxes. When can a certificate holder apply for tax deed? Pursuant to Florida Statute 197.502, at any time after 2 years have elapsed since April 1 of the year a tax certificate was issued, and before the cancelation of the certificate, the holder of the tax certificate may apply for tax deed. How do I make application for tax deed? Lake County and other Florida tax collectors use LienHub for online tax deed applications. For more information, go to the LienHub site and select Lake County from the menu on the home page. Who conducts tax deed sales for Lake County? The Clerk of the Circuit Court, Lake County, Florida. David W. Jordan Lake County Tax Collector Go to: Select Auction View: Welcome, Auction Schedule, FAQ