Can I get a mortgage on an OTC tax deed property?

Most conventional lenders won't touch a property purchased via tax deed until a quiet title action has been completed and a title insurance policy is in place. Hard money lenders will sometimes fund OTC purchases, but expect rates of 10–14% and points of 2–4. Budget for all-cash purchase and refinance after title is cleared.

Do I still owe property taxes from prior years after buying an OTC tax deed?

In most states, the tax deed extinguishes prior property tax liens — that's the whole point of the process. However, municipal liens for things like code enforcement fines, water bills, and demolition orders often survive the tax deed sale. Pull a full lien search from the city or municipality, not just the county, before you close.

How long does it take to actually receive the deed after paying the county?

It varies by county. In Florida, most counties record the deed within 5–10 business days of receiving payment. In Michigan, land bank transactions can take 3–6 weeks. Ask the specific office what their processing time is — don't assume it's fast just because you paid.

Are OTC tax deeds the same as tax lien certificates?

No. A tax lien certificate gives you a lien on the property and the right to collect interest — you don't own anything yet. A tax deed transfers actual ownership of the property. OTC tax deeds are deed sales, not lien sales. The confusion matters because the due diligence process and exit strategies are completely different.

What happens if the original owner challenges the sale after I buy an OTC property?

Challenges happen, though they're less common on OTC properties because the auction already occurred and the redemption period has usually expired. In Florida, property owners have limited grounds to challenge a tax deed sale after it's recorded, but they can still file suit alleging improper notice during the original tax certificate process. This is another reason to complete quiet title before doing any significant work on the property.

Over the Counter Tax Deeds: How to Buy Without the Auction Bidding War

Over the counter tax deeds are properties that failed to sell at a public tax deed auction and are now available for direct purchase from the county, usually at the minimum bid price or lower. Most investors focus entirely on live auctions and completely miss this channel. That's a mistake worth understanding, because OTC lists in active states like Florida and Arizona routinely contain hundreds of properties at any given time.

What "Over the Counter" Actually Means

When a county holds a tax deed auction and a property gets no bids, the deed doesn't disappear — it transfers to county inventory. From that point, the county becomes the seller. You deal directly with the county clerk or treasurer's office, not with competing bidders in a room or on an online platform.

The minimum price is typically whatever the delinquent taxes, fees, and auction costs totaled. In some Florida counties, that floor drops even further after the property sits unsold for 90 days. Polk County, Florida, for example, has sold OTC parcels for under $500 when no one bid at the original auction.

Where OTC Tax Deed Inventory Exists

Not every state ends up with meaningful OTC inventory. States that run frequent tax deed auctions — Florida, Arizona, Michigan, and Georgia — generate the most leftover stock. States with redemption periods longer than two years tend to have thinner OTC lists because fewer properties complete the full foreclosure cycle.

Florida is the most active. The Florida tax deed process moves fast enough that counties like Hillsborough and Duval carry rotating OTC lists with 50 to 200+ properties at any time. Arizona's Maricopa County publishes a monthly OTC list through the county treasurer. Michigan's land bank fast-track system is technically a separate program but functions the same way — direct county sale, no bidding.

How to Find OTC Lists

There is no national database. Each county manages its own inventory, and they publish it differently. Some counties post a PDF on the county clerk's website, updated monthly. Others require you to call the office or submit a written request. A few Florida counties embed OTC listings inside the same Realauction portal they use for live auctions.

The search process:

Call the county clerk or treasurer and ask specifically if they maintain an "over the counter" or "struck off" tax deed list
Ask how the list is updated and what the purchase procedure is
Request the current list in writing — email is fine in most counties
Ask whether the price is fixed or negotiable after a set holding period

Georgia uses the term "land bank" or "surplus property" for the same concept. Michigan explicitly calls it "forfeited property." The terminology varies, but the mechanism is identical.

Title Risk and What OTC Properties Actually Look Like

This is where most beginners get hurt. OTC properties carry the same title risk as auction purchases, and sometimes more. A property that failed to attract a single bid at auction did so for a reason — environmental issues, landlocked parcels with no road access, structural condemnation, or titles so clouded that a title company won't insure them without a quiet title action.

A quiet title lawsuit in Florida typically costs $1,500 to $3,500 in attorney fees and takes 60 to 90 days. In Michigan, the process is faster because the state's tax foreclosure statute is stronger, but you still need an attorney to confirm the chain of title. Budget for this before you commit to any OTC purchase.

Warning: Some OTC properties have been abandoned for years and are occupied by squatters or have been partially stripped of copper plumbing and electrical. A drive-by inspection is not enough — if you can't enter the structure legally before purchase, price in a $10,000–$20,000 unknown rehab contingency before you make an offer to the county.

Environmental flags are also real. Industrial-use parcels, old dry-cleaning sites, and properties adjacent to gas stations can carry cleanup liability that transfers to the new owner. Pull the EPA's ECHO database and your state's environmental agency records before touching any commercial OTC parcel.

The Purchase Process Step by Step

Once you identify a property you want, the process is straightforward in most counties:

Confirm the property is still available — OTC lists go stale fast, and counties don't always update them in real time
Request the exact purchase price including any recording fees and outstanding municipal liens
Submit a written offer or purchase form as directed by the county
Deliver payment — most counties require cashier's check or wire, no financing
Receive the tax deed, which you then record at the county recorder's office

Payment timelines vary. Some counties require full payment within 24 hours of offer acceptance. Others give you 30 days. Ask before you submit anything.

Negotiating Price on OTC Inventory

Counties are not motivated sellers in the traditional sense, but they do want to clear inventory. Properties that have sat unsold for six months or more are often negotiable. Several Florida counties have accepted offers 20–30% below the initial OTC asking price on parcels that generated no interest. The key is asking directly — "Is the county open to offers below the listed price?" — because the clerk's office won't volunteer that information.

Some counties will discount OTC prices if you agree to pay outstanding code enforcement liens separately or commit to rehabilitating the property within a set timeframe. Maricopa County, Arizona has used structured agreements like this for blighted residential parcels. These arrangements are informal and depend entirely on the county official you're dealing with, so get everything in writing before you pay.