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A tax sale refers to the forced selling of property, usually real estate, to recover unpaid taxes. These sales are conducted by a government agency or by the court, and are conducted by auctioning off the property. There are two main types of auctions. The first is a deed sale, which is the forced sale of the real estate itself. The opening bid consists of the back taxes owed plus interest and the costs associated with selling the property. The other method is a lien sale, where a lien is auctioned off to prospective investors. A lien is a security interest attached to a piece of property to secure the payment of taxes. Although the auctions are primarily conducted in person, in recent years, governmental agencies have begun to conduct them online as well. Conducting the auctions in this fashion has many benefits. It increases competition by allowing more potential investors to participate, because anyone can bid from the comfort of his or her own home. In the past, tax sale auctions were limited to those who were physically present at the site of the auction. But now, virtually anyone with Internet access can bid on real estate online. Online auctions are also less of a hassle. Potential bidders can browse the auctions online and bid quickly, and then resume focusing on other matters. They can monitor the auctions at any time and can quickly up their bid if necessary. The process takes much less time than traditional auctions because the bidder does not have to be present at the auction location all day waiting for the bidding to start on the one item he wants to bid on. Online tax sale auctions are easier for the government agencies as well. Conducting the auctions online instead of in person is cheaper and easier. When auctions are conducted in person, the government would need to find an auction space and hire staff to work the auction. The auction would take days to plan and would require a great deal of effort to make sure it ran smoothly. In contrast, online auctions do not require manpower and time to plan because there is no physical auction to run. All the government needs to do when hosting an online auction is to set up a website, list the properties that are up for auction, and wait for bids to come in. The trick to success when running an online auction is to create enticing listings and post appealing pictures of the property to draw in bidders. Because anyone can participate in an online tax sale auction, the risk of deadbeat bidders may increase. The anonymity of bidding from behind a computer screen may encourage insincere bidders who will not really pay for the property if they put down the winning bid. To discourage this practice, many online tax sale auctions require each bidder to put down a deposit, usually somewhere between $500 and $1,500, before he can start bidding. If you're interested in having a tax sale in Louisiana, consider doing it online. Find out how to set one up by visiting: http://www.civicsource.com/s?auctionType=adj.
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