Lenders have foreclosed on so many homes in Florida that they are beginning to lose track of them. Sandra Edmond, a Real Estate Tax Deed expert has found a NEW TREND in the Sunshine State: BANKS falling VICTIM to the Tax Deed AUCTIONS.

Edmond says this trend may be happening in other states like Florida which have a high foreclosure rate. "I have attended hundreds of Tax Deed Auctions over the last 5 years. Never have I seen so many homes with bank mortgages going to the Tax Deed Sale where the banks DO NOT pay the taxes in time to STOP the auction. Not only are we seeing more homes with bank mortgages sold at the Tax Deed sale, in some cases the lender is the owner of the property and they are now losing it in the Tax Deed Auction because the bank did not pay the back taxes"

Property taxes in most states are a first position lien. This means they must be paid before any other liens. If property taxes are not paid, counties and municipalities have the right to sell the property at a public auction to pay those taxes. Edmond goes on to say, "This is likely happening because many of the lenders have gone under and no longer exist, or the lenders cannot afford to pay the property taxes on all the property they are now forced to own, or perhaps they just can't keep track of the mounds of paperwork they find themselves under in this foreclosure crisis"

The lenders are notified by mail and in some case by a process server of the upcoming sale. Unless someone flags the mail at the bank it may be months before someone opens the letter. Florida sends their notices out 4 weeks before the sale. If a lender does not act in time, they will lose the property.

Recently a Tax Deed sold on a 2 bedroom 2 bath house for $31,000 at a local Tax Deed sale. Previously the home had sold for approximately $60,000. The home was built in 1989 and had two mortgages. The lender on this home did not pay the property taxes to stop the sale. Usually, the bank pays the property taxes when a homeowner does not pay them. The lenders do this to secure their investment and prevent losing the property at a Tax Deed Auction.

In Florida Tax Deeds do not have a redemption period. This means once the property is sold at an auction and the Tax Deed is recorded in the public records nobody can redeem the property and get it back, all sales are final.

Lenders who lose their property to Tax Deed Auctions are creating an even more lucrative opportunity for investors who buy Tax Deeds and Tax Lien Certificates. But this disturbing trends makes you wonder, "When will this foreclosure snowball stop rolling?" says Sandra Edmond.