In Arizona, you bid on the interest rate. The rate starts at 18% and you bid that amount down to what you are willing to take for interest on your money (tax owed). You have to win the bid for three years in a row and get through that third year to get the property , if the owner doesn't pay you the amount plus interest in those three years. Big draw back is that if there are enviromental issues and you take the property you are liable to clean it up. I have seen a owner let his property go back, because he could not cover the cost of a fuel release clean-up. Here the taxes are considered first position so the lender is out their money ( I guess the lenders clerk that didn't see the tax lien sale coming doesn't have a job)

In Shelby County,Tenessee there is a redemption period of I think it is now 1 year, used to be 2 where the property owner can pay the taxes with interest and get their property back. You get your  money back with interest. When the redemption period is up you get a Clerk & Masters Deed to the property. You are responsible for all the liens on the property also. Property tax liens do not take 1st position here. However IRS does. I am also an abstrator and have  been  for 30 years, I would suggest always doing a title search before you buy a tax sale so you don't get more than you bargain for.

As you are seeing Rob, every state is different...there have to be some S. Cali Point 2 memebers out there who can speak up...?