Oklahoma Tax Lien Certificates

Type of Tax Sales in Oklahoma Counties

Each of the 77 counties in Oklahoma conduct sales for Tax Lien Certificates with an 8% Interest Rate. The face value of each Tax Lien Certificate is the total of Taxes, interest penalties, and other costs associated. The Tax Lien Certificates are sold on a “first come, first serve” basis.

When are the auctions held?

Oklahoma Tax Lien Certificate sales are held in October each year. You can purchase Tax Lien Certificates not sold from the county throughout the year.

The Tax Lien Process in Oklahoma

In Oklahoma, rather than bidding on the property itself, you are really bidding on the right to collect interest on default property taxes. The amount of interest for all Tax Lien Certificates in Oklahoma is 8%. The former owner or anyone who holds an interest in the property may redeem the lien against the property within 2 years. This is known as their “Right of Redemption.” To redeem the lien against the property, the former owner must pay the total of the face value of the tax lien, accrued interest, and any other costs associated.
If the Tax Lien Certificate is not redeemed within 2 years, the holder of the certificate may apply for a deed to the property. This is the former owner’s last chance to redeem the lien; if no response is made within 60 days, the holder of the certificate will be issued the deed. The county will retain Tax Lien Certificates that are not sold at the initial sale. Investor’s may purchase county held certificates at any time for a period of 2 and a half years. If the certificates remain unsold the county will offer a sale of the actual property. This is known as a “Resale.” If no one purchases the property at the “Resale” then the county it issued the deed, and the property is removed from taxable properties in that county. These properties may then go on sale by the county; you can get a list of available county owned property from the County Treasurer.

Here's an example of how a TLC purchase could work in Oklahoma:

Tax Lien Certificate Face Value: $3,000.00

Interest Rate: 8.0%

Recording Fee's: $15.00

Other Costs: $50.00

Let’s say the investor purchases the Tax Lien Certificate and the former owner redeems the property after 1 year. The former owner must pay $3,305.00 ($3,000 @ 8% for 1 year, plus $15 in recording fees, plus $50 in other costs) to redeem the lien on the property. This is then returned to the holder of the certificate for a gain of $240.00 ($3,305 from former owner, minus $3,065 (face value, recording fees, & other costs).
Now, if the owner doesn’t redeem within the 2 years, you can end up owning the property for only the money you’ve put into it at this point. This is where the Tax Lien investor can realize huge gains on their investment.