Tax Sale

All fiscal year taxes that have not been paid by the day of the sale will be auctioned at the County's annual Tax Sale.  After a lien has been sold, the owner of the property has 2 years from the purchase date to pay the taxes plus the interest (1% per month) accrued up to that date.  

 

NOTE:  Property owners are required to pay their delinquent taxes (oldest first) prior to paying their current year taxes.

 

How does the purchaser of the delinquent lien benefit?

  1. If the owner of the property does not pay the taxes within 2 years from the purchase date the purchaser will be given the property.  OR

  2. If the owner of the property does pay the taxes within 2 years from the purchase date the purchaser will be reimbursed the amount he/she initially paid plus a 1.5% monthly interest.

 

When is the sale held?

 

The sale is held on the last Monday of August each year.  The sale starts at 9 a.m. the first day and at 9 a.m. each day thereafter until all delinquent parcels have been sold.  The sale usually lasts about two days.

 

Where is the sale held?

 

The sale is held in the 3rd Floor Board Room in the DeSoto County Administration Building at 365 Losher Street in Hernando, Mississippi.

 

Do you have to register for the sale and is there a fee?

 

Yes, it is recommended that you sign up the day prior to the sale or the morning of the sale.  You will receive a ticket which you will need to bid.  There is no fee. However, you must provide a Social Security Number OR Tax ID Number AND a photo ID.

 

Do you have to be present to participate in the sale?

 

Yes. You or a representative must be present at the sale.  There are no over-the-counter, phone or fax purchasing.

  

How are the sales advertised?

 

A listing of approximately 4500 parcels is advertised in the local paper, The DeSoto Tribune, on the two Thursdays preceding the sale.

  

What types of payment are accepted?

 

Cash, check, money order and cashier's check ONLY. We are unable to take credit cards.

 

What happens to the liens that are not sold at the auction?

 

They are turned over to the State.  Only about 1 -to 2 % of the 4500 items are turned over to the State each year.

  

What other expenses are included if the owner does not pay the taxes within the two years after the sale and you end up with the property?

 

The Chancery Clerk's office will notify you that the owner has not paid the taxes and that the property is being forfeited.  You will then have a specific period of time to respond and:

  1. Acquire the Tax Deed or Clerk's Conveyance by paying the --

    • certified mailing fees (usually a total of 4 mailings)

    • recording fee = $7

    • title fee = $20

  2. Attend a Confirmation Hearing in the Chancery Court to clear the title. Expenses may include:

    • court fees

    • lawyer fees

This entire process takes about 7 months.

 

What happens if the owner decides to pay the taxes after the two year period after the sale?

 

The owner must notify the purchaser (or person it was forfeited to) and attend the Confirmation Hearing in front of the Chancery Court to explain why he/she did not pay the taxes previously and the judge will determine if his/her explanation is reasonable.

 

What happens if the judge awards the property to the owner?

 

On an average, once the process has gone this far, about 50% or half of the forfeited properties are turned back over to the original owner who is required to pay --

  • the taxes for the earliest year

  • 1% interest per month (37.5 % total)

  • publishing fee

  • Chancery Clerk's fees

  • reimbursement to the purchaser for the Clerk's Conveyance and court and lawyer fees (this is a request not a requirement)

The purchaser will be reimbursed the initial amount paid for the lien at the sale, plus 1.5% interest per month.