Scavenger Sale
A special type of tax sale for properties with taxes delinquent for multiple years, often offering properties at deeply discounted prices.
A scavenger sale (also known as a "forfeiture sale" in some jurisdictions) is a special type of tax sale conducted for properties that have been tax-delinquent for an extended period — typically three or more years — and have failed to sell at regular annual tax sales. These sales are designed to return long-neglected properties to productive use and get them back on the tax rolls.
Scavenger sales often offer the most deeply discounted properties available through the tax sale process. Because these properties have been passed over at multiple previous auctions, starting bids may be set extremely low — sometimes as little as the cost of the administrative fees. This creates opportunities for investors to acquire properties for pennies on the dollar of their actual value.
However, the reasons these properties haven't sold previously should give investors pause. Common issues include properties in severe disrepair or condemned status, lots in undesirable locations, environmental contamination, title complications, or properties with limited market value. Thorough due diligence is absolutely critical for scavenger sale purchases.
Despite the risks, scavenger sales have become a viable investment strategy for certain investors. Those who specialize in distressed properties, have experience with renovations, or focus on land banking in developing areas can find genuine opportunities. Some investors have built entire portfolios around scavenger sale acquisitions, using their specialized knowledge and local market expertise to identify diamonds in the rough.