Online or internet auctions are similar to public auctions, except that your computer replaces a physical auction location. You will still need to do the same procedural steps such as registering as a bidder and getting a list of liens or properties, but you will do this online. Some counties or municipalities will use a service to conduct their internet tax lien or tax deed sales (e.g., Bid4Assets, Realauction or Zeus Auction), while others will conduct the sales themselves using their own government websites.
Liens or properties are typically offered in batches for bidding, with scheduled closing times. Through proxy bidding, a bidder can enter the minimum interest rate he/she is willing to accept for each certificate. The auction system then acts as an electronic agent, submitting bids on behalf of the bidder until his/her minimum bid rate is met.
Participating in an internet auction allows you to avoid the costs of travel and enjoy the comfort of your home. The tax sale list will be available online, often with each lien or deed accompanied by the relevant property information you require to do your due diligence.
A list of states in which there are counties (or municipalities) conducting online tax lien and/or tax deed auctions include Arizona, California, Florida, Idaho, Indiana, Louisiana, Maryland, Michigan, Nebraska, New Jersey, New York and Washington.