Redemption

Related terms

Redeemable deed

A hybrid instrument where the buyer purchases the deed at auction, but the former owner has a set window to redeem by paying the bid plus a penalty. Redeem, and the buyer earns the penalty; do not, and the buyer keeps the property. Georgia and Texas are examples.

ACH (bank transfer)

Automated Clearing House: the electronic bank-to-bank transfer most auction sites use to collect deposits and final payments. ACH is not instant. Counties typically require your deposit to clear several business days before the sale, so funding late can lock you out of bidding.

Bid-down-interest

A lien-sale auction format where bidders compete by accepting a lower interest rate rather than paying more. The auction starts at the statutory maximum and the rate is bid down; the lowest rate wins. Florida uses this method, starting at 18 percent.

County-held certificate

A Florida tax certificate that received no bid at the annual sale and was struck to the county at the full 18 percent. Any buyer can purchase it over the counter afterward at face value plus 1.5 percent per month plus a fee.