Tax taking is a form of forced sale by taxation authorities in lieu of unpaid taxes.

Auction for Tax Bills

Richland County, South Carolina

Richland County, South Carolina

Richland County is a county located in the U.S. state of South Carolina. The 2000 U.S. census recorded its population to be 320,677. In 2010, the U.S. Census Bureau recorded that its population had reached 384,504. It is the second most populous county in South Carolina, behind only Greenville...

 is a typical tax deed county. If the taxes are unpaid for five years then the tax bill will be sold at an auction. The property owner then must pay an annualized 12% interest within the next year to retain the property (3% in first 3 months, etc.). After that year the county files a tax deed to the successful bidder. The odds are 1% to 10% of getting stuck with a property. The mortgages and other liens transfer. A Quiet title

Quiet title

An action to quiet title is a lawsuit brought in a court having jurisdiction over land disputes, in order to establish a party's title to real property against anyone and everyone, and thus "quiet" any challenges or claims to the title....

 action for a quit deed costs $3,500 to $8,000 and takes 6 months or so, or sit on the property for 10 years.

Tax Foreclosure Sales

Los Angeles County, California

Los Angeles County, California

Los Angeles County is a county in the U.S. state of California. As of 2010 U.S. Census, the county had a population of 9,818,605, making it the most populous county in the United States. Los Angeles County alone is more populous than 42 individual U.S. states...

 sells the property itself at a semi-annual auction.
Wake County (Raleigh-Durham/RTP), North Carolina sells the properties at irregularly scheduled, approximately monthly auctions on the county courthouse steps. Similar to Gwinnett County, Atlanta, Georgia

Atlanta, Georgia

Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...

.

Profitablility

The profitability of Tax Foreclosure Sales is heavily dependent on the property condition, the outstanding liens, and the popularity of the tax sales. For instance, for the Los Angeles County Tax foreclosure sale in 2005 almost no properties of value lasted until the auction: wily investors made deals up to the Saturday before the auction. Similarly, the 2005 Richland County auction attracted about one investor for every three tax bills for an area where 3% annual property appreciation is spectacular.