Posted by Nick Miller on Friday, May 9th, 2025 10:24am.
Mississippi offers unique opportunities for property buyers through its tax lien and tax deed processes. Understanding the difference between these two methods and the steps involved is essential for anyone looking to invest or acquire property due to unpaid taxes.
In Mississippi, when property taxes go unpaid, the county holds a tax sale. Buyers at these sales receive a tax lien certificate, giving them the right to collect the debt plus interest. This is different from some other states where buyers receive a deed immediately.
Mississippi law grants the original property owner a two-year redemption period following the tax sale. During this time, the owner can redeem the property by paying the owed taxes, interest, and fees. If the owner redeems, the tax lien holder is reimbursed their investment plus interest.
If the property is not redeemed within the two-year period, the lienholder can apply for a tax deed, which transfers ownership of the property. It’s important to note that this deed does not automatically clear all encumbrances; certain liens, such as federal tax liens, may remain attached.
After obtaining a tax deed, buyers often need to initiate a quiet title action to clear any remaining claims and secure marketable title. This process can take additional time and involves legal fees, but it is essential for future sales or development of the property.
Investing in tax liens and tax deeds in Mississippi can yield substantial rewards but requires careful planning and legal compliance. Partnering with a knowledgeable real estate attorney can help navigate the complexities and protect your investment.