Over-the-Counter
Tax liens or tax deeds that were not sold at public auction and are available for purchase directly from the county or taxing authority.
Over-the-counter (OTC) tax liens and tax deeds are properties that failed to sell at public auction and remain available for purchase directly from the county treasurer, tax collector, or relevant government office. These are sometimes referred to as "struck off" properties because they were struck from the auction list without finding a buyer.
OTC purchases offer several advantages for savvy investors. There is no competitive bidding, which means investors can often acquire liens at face value or deeds at the minimum opening bid. The buying process is typically more relaxed, allowing investors time to conduct thorough due diligence without the pressure of a live auction. OTC inventories are available year-round in many jurisdictions, not just during designated auction periods.
However, there are reasons these properties didn't sell at auction. Common issues include properties in undesirable locations, vacant lots with limited value, properties with environmental contamination, or structures in poor condition. This doesn't mean all OTC offerings are bad investments — it simply means more careful evaluation is required.
Many experienced investors have built successful strategies around OTC purchasing. By developing relationships with county officials, maintaining active lists of available properties, and applying rigorous due diligence criteria, investors can find hidden gems among OTC inventories. Some counties maintain online lists of available OTC properties, while others require an in-person visit or phone call to inquire about availability.