Wholesaling Tax Delinquent Properties: The Ultimate Guide

Wholesaling tax delinquent properties turns unpaid property taxes into an opportunity. When owners fall behind, counties move toward tax sales or redemption timelines—creating motivated sellers who need options fast. By pulling a clean delinquent tax list, verifying equity and liens, and reaching out with empathy, investors can solve a problem for the owner and assign the contract for a fee.

This guide shows you how to find tax-delinquent leads, understand local lien/deed rules, run compliant outreach (mail/calls/SMS), and structure assignment-friendly offers that account for taxes, fees, and repairs. Ready to dive in? Use the menu below to jump to each step.

• What Are Tax Delinquent Properties?
• Why Tax Delinquent Properties Are Great Opportunities For Real Estate Investors
• What Is A Delinquent Tax List?
• How To Scrub A Tax Delinquent List?
• How To Find Tax Delinquent Properties In Your Area To Wholesale?
• How To Wholesale Tax Delinquent Properties? (8 Steps)
• Tax Delinquent Wholesale Script
• Flipping Tax Delinquent Properties (5 Tips)
• Can You Own Property By Paying Taxes Owed On It?
• Can You Sell A House With Property Taxes Owed?
• FAQ: Wholesaling Tax Delinquent Properties
• Final Thoughts

What Are Tax Delinquent Properties?

Every real estate property in the United States will always owe property taxes. Even if a property owner has paid off a mortgage in full, property taxes will always be levied by the county or township where the property is located. 

A tax delinquent property is a property where the owner has fallen behind on paying the property taxes. When a property owner defaults on property taxes, the county has the right to recoup the taxes owed.

Every state and county will have specific rules and laws around tax delinquent property sales.

Some states utilize a process where they place and sell lien certificates on tax-delinquent properties. This is covered in more detail later in the article. 

Other states go straight to a tax deed sale where the delinquent property is foreclosed on and sold to investors at an auction.

As a real estate investor, it is critical that you understand how your particular investing market operates around wholesaling tax delinquent properties. Working with a local tax attorney or real estate attorney in your market will help you stay updated on your market’s rules and regulations. 

A local realtor who focuses on real estate investing strategies may also be able to advise on local rules.

The rights to ownership are different between a tax lien certificate sale and a tax deed sale. We’ll review these differences below. 

Similar to a mortgage foreclosure auction process, the property owner will receive warnings that they are at risk of losing their property. The local county or township will start issuing notices to the property owners that their taxes are past due.

With each delinquency notice, the county will place an additional tax lien certificate against the property and the property owners. Every state has different rules and timelines, but after the state’s specific time window passes, the state or county can auction off the tax lien certificates to investors. 

When an investor purchases a tax lien certificate, he or she pays the back taxes to the county. The distressed property owner is then obligated to repay the back taxes to the investor, plus interest. This creates cash flow and passive income for the investor.

Interest rates vary and are typically set at the county level. A tax lien sale does not immediately give an investor an ownership right to the property.

Rather, investors who choose tax liens are attempting to create a long-term cash flow situation with the potential opportunity to acquire the property later.

If a property owner defaults and cannot pay back the investor, the investor can take ownership and possession of the property. These timelines vary significantly by state and county. 

If the state or municipality operates on a tax deed model, the county can take direct possession of the house through a foreclosure process. The property owners are forced to vacate, and the property is sold at a county tax auction.

In these circumstances, real estate investors make money through the direct purchase of the property at the county auction sale.

Why Tax Delinquent Properties Are Great Opportunities For Real Estate Investors

Wholesaling tax delinquent properties gives investors of any skill level an opportunity to invest and make relatively quick money with minimal risk.

Investors have a few different options to work with when investing in tax delinquent properties. They can purchase tax lien certificates and collect interest on back tax payments. They can buy a property directly from the county at a tax deed sale. 

While these two methods can be lucrative, it can also be tough for a real estate investor to break out from the competition. Traditional property auctions are saturated with investors looking for a good deal.

For those investors who purchase tax lien certificates, the investment may only come to fruition over the long term.

A real estate investor or wholesaler has a third option: he or she can locate tax delinquent properties BEFORE the situation has gotten too dire for the distressed homeowner. They can locate properties where the owner has fallen behind on property tax payments but is not yet too far beyond saving from auction. 

They can locate properties that are showing signs of financial distress and are heading for a tax auction sale….but they aren’t quite there yet!

By conducting thorough due diligence and identifying these tax delinquent properties earlier, the investor can not only identify deals that the competition can’t find, but they can help the distressed homeowner get out of a financially devastating situation. 

Once the property is found and identified, the investor can wholesale the tax delinquent property to a third party investor. These types of investors are often ready with cash and quick closing terms (aka cash buyers).

They may be interested in locating properties to flip or to fix up and hold as rental properties.

Many real estate investors, especially new investors, get intimidated by this type of opportunity, leaving the market open for those investors willing to work with their counties and understand local regulations.

Finally, the owners of tax delinquent properties are often desperate for a solution and seeking help, providing the investor with a  great opportunity to find a good deal and help the owner out. 

If an investor is able to work with a delinquent property owner early in the process---before their property is put up for auction---a win-win scenario can be created that helps the distressed owner.

Read Also: How To Flip A House For The First Time (ULTIMATE GUIDE)                                                  

What Is A Delinquent Tax List?

A delinquent tax list is a public record and kept on file with your local county clerk. These lists outline property addresses where the property owners have fallen behind on paying their property taxes.

As soon as a lis pendens or warning notice is officially given to a property owner, the warning is recorded and the matter becomes public knowledge. Every city and county/township will maintain a list of these tax delinquent properties.

How To Scrub A Tax Delinquent List?

Scrubbing a marketing list is the act of cleaning up and removing any discrepancies or red flags. Working a marketing plan with a “clean” list of data starts your campaign on the right foot, ensures you are marketing to your target audience, and ultimately sets you up for success.

Scrubbing a tax delinquent list — or any lead generation list — can feel overwhelming. However, the effort is ultimately worth it as you can save time in the long run. 

If you are using a paid list service, many offer a “duplicate removal” search option. Even if this feature costs a few dollars, it is worth your time to pay it. This service will search for duplicate addresses and/or name combinations.

If you are doing your own list scrubbing manually, check for the following duplicate or suspect items: duplicate email addresses, “spammy-sounding” email addresses, or any names that have previously unsubscribed from your marketing lists. 

This is also a great opportunity to proofread and correct any obvious typos.

Investors can also run their lists against the National DNC Registry. This will alert the investor to any names on the list who have specifically registered with the DNC Registry and do not wish to receive any solicitation calls.

How To Find Tax Delinquent Properties In Your Area To Wholesale

If your goal is wholesaling tax delinquent properties, speed and accuracy win. The play is simple: pull a clean list before the county’s tax sale clock runs out, verify ownership and equity, make contact with empathy, and move the most motivated sellers into contracts you can assign. Below is a step-by-step, boots-on-the-ground process you can run this week.

Step 1: Pull The Official Delinquent List (Free First)

Your highest-quality source is the government office that bills/collects property taxes. Start here:

• County Tax Collector/Treasurer/Comptroller: “Delinquent tax roll,” “tax sale list,” “tax lien list.”
• Assessor/Appraiser: parcel lookups, ownership/mailing, assessed value, exemptions.
• Clerk/Recorder: recorded liens, deeds, probates, transfers.
• Open Data / GIS portals: downloadable CSVs with APN, owner, situs, mailing, delinquency flags.
• Legal notices: county website or newspaper’s “public notices” (pre-sale publications).

Try these search strings:

"[Your County] delinquent tax list CSV"
"[Your County] treasurer tax sale 2025 pdf"
"[Your State] property tax lien list download"
"site:[county.gov] delinquent taxes filetype:csv"

Step 2: If It’s Not Online, Ask (Politely) For The File

Call or email the tax office. Be brief and specific about the file you want and the format (CSV preferred). Many counties will send a link or export it for a small fee.

Step 3: Collect The Right Columns (So You Can Work Fast)

When you pull or request data, target these fields. They make filtering and outreach 10× faster.

Step 4: Filter & Prioritize (Actionable Criteria)

• Time delinquent: 2+ years delinquent first; 1 year as secondary.
• Owner type: absentee owners (mailing ≠ situs), estates, LLCs with old transfers.
• Equity: older loans/last sale > 8–10 years; low mortgage indicators.
• Condition proxies: code violations, utility shutoffs (if public), USPS vacancy flags.
• Property type: SFR/duplex in bread-and-butter zip codes; avoid luxury or oddball assets early on.
• Amount due: not too small (low urgency), not catastrophic (title complexity). Balance is best.

Step 5: Verify & Enrich The Data

• Cross-check assessor (owner/mailing), recorder (deeds/liens), and GIS (lot size, overlays).
• Title pre-check (light): look for IRS/state tax liens, HOA super liens, municipal fines.
• Estimate ARV with comps to ensure an assignable spread after taxes/fees.

Step 6: Make Contact (Compliant & Consistent)

Use a mix of mail, phone, and in-person when appropriate. Keep it empathetic—tax delinquency is stressful.

• Mail #1: simple letter/postcard acknowledging the situation and offering options.
• Phone: call during daylight; be respectful; ask permission to discuss options.
• Door-knock: only if local and safe; bring a one-page options sheet.
• Cadence: 3–4 touches over 14–21 days; log responses; update dispositions.

Compliance note: Observe federal/state TCPA, DNC, and local solicitation rules. Use approved SMS routes (A2P/10DLC) and respect opt-outs. For ringless voicemail, know your state’s stance.

Step 7: Structure The Deal (Assignment-Friendly)

• Know the timeline: pre-sale notice dates, redemption windows, interest/penalty accrual.
• Model the net: ARV – repairs – taxes/fees – closing – assignment = target MAO.
• Exit paths: assignment, double close, wholetail (if simple), novation (select cases).
• Title: open early; confirm payoff for taxes/other liens; check for city abatements.

Free Sources vs. Paid Data (When To Upgrade)

Start free. If you’re scaling or your county’s data is fragmented, a paid data tool can compress time:

• Public records (free): county sites, open data, clerk/recorder PDFs & CSVs.
• Realeflow: marketing + deal search + CRM—from list building to mailers and pipeline tracking.
• PropStream: deep public-records dataset, fast filtering (absentee, equity, years delinquent), exports, comps.

Weekly Operating Rhythm (What To Do, When)

• Monday: pull/update list; dedupe; tag “hot” (2+ yrs) and “warm” (1 yr).
• Tuesday: skip trace top 150; launch Mail #1; queue calls.
• Wednesday–Thursday: call attempts 1–2; log outcomes; schedule drive-bys if needed.
• Friday: send follow-up letters to responders; prepare next week’s batch.
• Ongoing: weekly KPI—contacts, conversations, offers, contracts; refine filters.

Common Pitfalls To Avoid

• Chasing every parcel—filter first for motivation and equity.
• Ignoring redemption rules—know the calendar before you promise timing.
• No empathy—owners in distress respond to options, not pressure.
• Skipping title—hidden liens can erase your spread.
• Over-texting—respect opt-outs and channel rules.

Local Offices & Websites (Still Your Best Free Source)

Many counties publish delinquent tax rolls or tax sale lists online. If not, the tax collector/assessor can tell you how to request them. You can also scan public records by lien type for early distress signals (IRS, HOA, municipal). When in doubt, ask the tax assessor’s office for the latest export and any FAQs on the process.

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

How To Wholesale Tax Delinquent Properties? (8 Steps)

If you’re wholesaling tax delinquent properties, your edge is speed + empathy. Use this workflow to go from raw delinquent list to an assigned contract—without wasting cycles on low-motivation leads.

Step 1: Locate a Tax-Delinquent Property

Start with official sources (tax collector/treasurer, assessor, clerk/recorder). Download the most recent delinquent roll (CSV if possible). If it isn’t online, request it by email and ask for APN, situs, owner mailing, years/amount due.

• Filter fast: 2+ years delinquent, absentee owners (mailing ≠ situs), bread-and-butter price points, no oddball property types.
• Pre-qualify: check last sale date/price for equity; note homestead flags and obvious title issues (IRS/state tax liens, HOA super liens).

Step 2: Market to the Property Owner

Launch outreach to your list via direct mail, targeted calls, yellow letters, and (where compliant) SMS. Keep copy simple and options-driven.

Step 3: Analyze the Deal

When a seller engages, confirm taxes, liens, and realistic value. Run ARV, verify condition, and account for all back taxes/penalties in your numbers.

MAO ≈ (ARV × 0.70) − Repairs − Back Taxes/Fees − Closing − Your Assignment

Step 4: Contact the Homeowner (Empathy First)

Open with permission and options. Explain you can help them evaluate catching up, a payment plan, or a quick sale. Keep tone respectful—tax delinquency is sensitive.

Step 5: Put the Property Under Contract

Negotiate a win-win price that clears taxes and leaves room for your fee. Include an assignability clause and appropriate contingencies (clear title, access, inspection period). Open the title immediately and request a payoff.

Use your network to sense-check prices and repairs before the inspection period ends.

Step 6: Market the Contract to Cash Buyers

Package the deal: photos, a short video walk-through, tax payoff proof (redacted), comps, repair notes, access instructions, and assignment fee. Share with your buyer list, REI groups, and trusted flippers.

Know the rules: If your state restricts advertising equitable interests, stick to buyer lists and direct offers. Review the legalities of wholesaling in your market.

Step 7: Secure a Buyer & Assign the Contract

Collect EMD from the end buyer, execute the assignment, and circulate to the title. Confirm the buyer understands payoff totals, redemption nuances, access, and closing timeline.

Step 8: Close & Collect Your Fee

Coordinate with an investor-friendly title company. Ensure taxes, penalties, and any required city fees are on the closing statement. Be proactive on documents and utilities so funding isn’t delayed.

Related: Virtual Wholesaling (How To Flip Houses From Home)

Tax Delinquent Wholesale Script

Reaching out to distressed property owners can feel intimidating and overwhelming. If you use a script and have notes handy outlining your mission, it will help.

A script can help investors, especially new wholesalers, stay focused as they work through connecting with a property owner.

Questions and dialogue should be specific to the motivation and issue the motivated sellers are facing. Remember, it is critical that the real estate investor stay compassionate, listen closely to what the property owner is saying and ask a lot of questions to fully understand their unique situation. 

It’s also important to uniquely position yourself as an investor. There is a chance that these distressed property owners have already heard from other investors.

They may be feeling completely overwhelmed. They may have already been contacted by a lot of people and don’t want to talk to anyone else.

These property owners may be in over their heads. They may have acquired the property through an inheritance or a probate process. 

They may have fallen on tough financial times. Your job is to offer a potential solution and help them. 

You have to offer a value proposition that not only showcases your strong abilities, trustworthiness, and professionalism but also makes them feel comfortable and safe. 

You can talk about your experience with wholesale deals or your large network of support. While these are fine to highlight, make sure you keep the conversation focused on the property owner and how you bring value.

If you approach these owners with an attitude of assistance and solving their problems, they may be more willing to listen.

A potential script could be something like this:

“Hi, XXX, I understand you’re the owner of 123 Maple Street. My investing company specializes in homes with unique financial challenges. In fact, we have a tax assistance program that may help you. I came across your house and understand you may be needing some help right now. Do you have a few minutes to chat now?”

As you move forward through contract negotiations, hammering out terms and securing a purchase contract, continue to express genuine empathy and approach the situation with a win-win attitude.

Related: Probate Wholesaling (The Ultimate Guide)  

Flipping Tax Delinquent Properties (5 Tips)

Many investors prefer to focus on tax delinquent properties by purchasing them at auction, rehabbing and flipping them back onto the open market.

Below are a few tips around this strategy:

1. Work closely with your county recorder to understand dates and timelines for pending auctions. Many counties offer property auctions or tax deed sales only once or twice a year. There will also be rules around how the properties can be purchased and how quickly they must be paid for before taking ownership. Understand your county’s rules and regulations so you are prepared to bid.
2. Property auctions can be intimidating to an unseasoned real estate investor. Consider working with a more experienced investor for your first auction or tax sale deal to learn the ropes and understand the process.
3. Know your local market inside and out, and understand how to run your numbers.
4. Stay calm at the auction and don’t get caught up in the hype. Many rookie investors can make the mistake of overpaying for a property because they got caught up in the excitement of an active bidding process. Stick your numbers and stay calm!
5. Build an experienced team of professionals around you: a real estate agent, real estate attorney, lender, county clerk, licensed general contractor, an experienced property management company, and an investor-friendly title company, for example. Having a strong team around you will help you process your deals quickly and seamlessly.   

Can You Own Property By Paying Taxes Owed On It?

Yes and no. Here’s why: 

In many counties across the country, if a property owner falls behind on property taxes, the county has the right to sell that property at auction. Therefore, a real estate investor could come in and pay the back taxes owed. 

Back tax amounts will vary significantly as every state collects different amounts based on the property’s assessed value. Local government will determine the exact process for past due taxes and fee assessments. 

But not so fast: the investor doesn’t just automatically own the property at that point! The original property owner will have a time period called the “redemption period” in which they have an opportunity to come up with the money to pay back the back taxes, plus interest.

If the original owner can come up with the funds in the redemption period, he or she can usually get their house back.

The redemption periods can be years in length (it varies significantly by state and county). Therefore, this real estate investing strategy must be approached with a longer-term mindset. This is not a game for quick flips! 

Can You Sell A House With Property Taxes Owed?

The short answer is no, you cannot sell a house with property taxes owed. You can create a deal where the property taxes will be satisfied during escrow or just prior to closing. This would then allow the house to be sold.

Remember that all liens---including back property taxes---must be satisfied prior to a real estate closing.

This is why it is so crucial that the wholesaler work these back taxes into the costs of putting together a tax delinquent deal. These costs must be covered by one of the parties before the property can be sold.

If you have questions on whether you have included all of the liens in your calculations, you can also have a title search run by a title company to verify and check for additional liens on a property.

FAQ: Wholesaling Tax Delinquent Properties

These answers tackle advanced questions related to wholesaling tax delinquent properties. Use them to avoid common pitfalls and move from interest to assignment with fewer surprises.

What’s the difference between tax liens, tax deeds, and redeemable deeds—and which can I wholesale?

A tax lien state sells the lien (debt + interest), a tax deed state sells the property, and redeemable deed states sell a deed that can still be redeemed for a set period. You can wholesale motivated-seller contracts in any state, but your approach, timeline, and disclosures must follow the local system’s rules (especially around redemption and notice).

Can I wholesale a property that’s already scheduled for a tax sale or in redemption?

Often yes, but the calendar controls everything—offers must account for payoff deadlines, posting requirements, and potential owner/IRS redemption windows. Always confirm dates in writing with the tax office and title, and disclose timing risks to your buyer in the assignment package.

How do I verify the exact payoff for taxes, interest, and penalties before I make an offer?

Request a written payoff or “good-through” amount from the tax collector/treasurer and ask if additional fees will accrue before closing. Have title independently confirm the payoff on the settlement statement and include a contingency that the deal is subject to verified payoffs and clear title.

What contract language helps protect wholesalers in tax-delinquent deals?

Use assignability, access/inspection, clear-title, and payoff verification contingencies, plus a realistic closing timeline tied to tax-sale or redemption dates. Add seller cooperation clauses (providing statements, signing payoff requests) so the title company can obtain all figures quickly.

What title problems are common with tax-delinquent properties—and how do I reduce risk?

Expect municipal/utility liens, HOA super liens, code fines, nuisance abatements, and occasional IRS/state tax liens. Open title early, order a lien search, budget for curative work, and if risk is high, pivot to a double close or walk away if the spread disappears.

Final Thoughts

Wholesaling real estate is a great place for new investors and seasoned investors to make relatively quick money with no money of their own.

Real estate investors who are willing to go the extra mile, by conducting detailed research, understanding their local county and township property rules, and reaching out to distressed property owners to have tough conversations, will enjoy a unique real estate investing niche. 

Understanding how to effectively wholesale different property types will only help investors stay dynamic and ahead of changing markets. 

By locating tax delinquent properties early in the process and before they go to auction, these investors can help distressed owners and find deals that beat out the competition.  

Have you ever wholesaled a tax delinquent property? How did your experience go? 

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.