It’s always nice to be the owner of something, whether it’s your little fire truck from when you were younger or the Xbox 360 you owned as a teenager. When you get older, you start owning bigger things, like cars or houses. With these bigger purchases come equally bigger responsibilities. You have to pay property taxes or interest. You have to keep everything up to date and make sure that you are not reneging on anything you were supposed to do. Like everything in the world, there are always consequences if something is not done properly.Say you have bought a new house. You will be given a deed to the property that will show everyone that it is yours. However, if you fail to pay your taxes, your house will be put on sale and the purchaser will be given a tax deed, showing that they bought the house because you did not fulfill your duties as a homeowner. There is a certain process for this kind of sale, and whether you’re facing it as a homeowner or facing it as someone who is looking to buy a house for a cheaper price, you would do well to know what is going on.The government entity that is in charge of selling the house and tax deed will generally put it up at a public auction. This way, anyone who is shopping will be able to get in on the action. Usually, the minimum bid will be the amount of back taxes owed and will also cover any of the costs to putting the house on the auction block. It may also include any interest that’s accumulated. In the event that the house does not sell, it will return to the entity that is selling it and they will try another avenue to get rid of it. If you are looking to acquire some real estate in a tax deed sale, you will want to search out some different auctions. Don’t simply choose the first real estate you come across. There will be auctions all the time. Another option you can look into is an online auction. This is just the same as an in-person auction, and the only difference is that you would participate in the bidding via an online bidding service. This is a great way to bid from the comfort of your home – the only drawback would be that you might not be able to see the property before you bid on it.If you’re the lucky winner of a tax deed sale, be sure you know whether or not your state offers a “redemption period.” This is a period of time where the previous owner of the property could buy his or her property back if he or she pays the amount bid at the auction plus a penalty. There would be nothing you could do about it, although you would get your money back. Therefore, you are advised not to make any major improvements until the period has ended and you are sure that the property is yours.Whether you are looking at a tax deed sale as the buyer or the person who has lost their house, it is good to be prepared and to know the ins and outs of what exactly is going to happen.