If you’re thinking about getting into Franklin County tax lien sales, here’s the scoop. The county holds tax lien sales where you can buy liens on properties that haven’t paid their taxes. Before you dive in, it’s super important to understand the local rules and how everything works. With a mix of open land and growing neighborhoods, there are plenty of chances to find good investments. Getting the basics down will help you make smart choices!

Brief Overview of Franklin County’s Tax Lien Investing

Missouri uses a tax lien certificate system rather than a tax deed sale. When property owners fall behind on taxes, the county collector auctions lien certificates to recoup the unpaid taxes. Investors bid to pay the delinquent taxes and receive a certificate of purchase. The owner then has one year to redeem the property by repaying the taxes plus interest. If the owner fails to redeem, the certificate holder may apply for a collector’s deed and take title. Franklin County follows the same process and holds its auction in person at the county commission office. Understanding bidding procedures, redemption rules, and registration requirements helps investors make informed decisions.

Important Details

Attractions & Economic Highlights

• Parks and rivers: The Missouri River, Meramec River, and Bourbeuse River offer boating and fishing. County parks and trails provide outdoor recreation.
• Wineries and heritage: Wineries near Hermann and New Haven celebrate German heritage and draw visitors.
• Transportation: Interstate 44 links the county to St. Louis and Springfield, while smaller highways connect rural towns.
• Economy: Major industries include manufacturing, health care, retail trade, and agriculture.
• Community life: Festivals, farmers’ markets, and local fairs showcase the county’s rural charm and close‑knit communities.

Why This County is Ideal for Tax Lien Investors

• High returns: Missouri’s 10 % annual interest rate on redeemed taxes is higher than many bank CDs.
• Low risk: The county holds a lien, not the deed, so owners have time to redeem. Investors receive a certificate backed by the property.
• Stable economy: Moderate population growth and a diverse economy help maintain property values.
• Predictable schedule: The auction occurs on the fourth Monday in August, making planning easier for investors.
• Local demand: Rural properties, vineyards, and suburban lots appeal to a broad market, offering potential resale or rental opportunities.

Auction Process for Tax Lien Sales

Franklin County follows Missouri statutes requiring counties to hold tax lien auctions annually on the fourth Monday in August at around 10 a.m. local time. The sale is advertised for three weeks in a local newspaper, and the list of parcels is typically available online or at the collector’s office. Only Missouri residents may bid, and bidders must be at least 18 years old and not owe delinquent taxes. Each bidder signs an affidavit affirming these facts and presents identification.

How the Auction Works

Maximum Potential and Expected Returns on Franklin County Tax Lien Certificates

Returns from Franklin County tax liens derive from statutory interest rates. When a property owner redeems, the investor receives the original tax amount plus 10 % interest on that amount. If the investor pays subsequent years’ taxes to protect the lien, those payments earn 8 % interest. Because Missouri uses a bid‑up system, competition may drive the purchase price above the tax amount, which reduces the effective return. However, investors who buy liens at or near the delinquent tax can achieve yields comparable to double‑digit annual returns, which is higher than many conservative investments. If the owner fails to redeem, the investor can obtain a deed to the property after one year and may realize a larger gain upon resale. It is important to account for costs such as title searches, notice requirements, and potential legal fees when estimating returns.

Open to All Investors / Foreign Investor Participation

Unlike some states that welcome bidders from anywhere, Franklin County restricts participation to Missouri residents. Sale notes from the county’s 2023 tax lien auction state that bidders must be Missouri residents and must sign an affidavit verifying that they owe no delinquent taxes. No one may bid on behalf of another person. These rules mean that out‑of‑state or foreign investors cannot participate in the live auction. Investors who reside in Missouri should arrive early to register. Those outside Missouri who are interested in tax lien investing may consider other Missouri counties that allow non‑residents or explore secondary markets where certificates are sold after the auction.

Importance of Due Diligence in Franklin County Tax Lien Investing

Successful investing requires more than showing up at the auction. Investors should thoroughly research each property, evaluate potential risks, and plan for redemption timelines.

What Due Diligence Entails

• Review property information: Examine the parcel’s location, zoning and estimated value using county GIS maps or assessor records. Confirm that the property exists and is not landlocked.
• Check liens and encumbrances: Tax liens do not extinguish other liens. Review the title for mortgages, judgments, or environmental issues. Investors may need to hire a title company or attorney.
• Inspect the property: Whenever possible, visit the property to assess its condition. Check for structures, access roads, occupancy and any visible hazards.
• Calculate costs: Estimate the total investment, including the premium paid, interest, subsequent tax payments, title search fees and legal notices.

Risks of Skipping Due Diligence

• Hidden liabilities: Unknown mortgages, code violations, or environmental issues can reduce the value of the property and diminish returns.
• Inaccessible or unusable land: Some parcels may be small, landlocked, or in floodplains, making them hard to resell.
• Redemption uncertainty: Owners may redeem at the last moment, resulting in lower returns than expected. Failing to account for this possibility can disrupt cash flow.
• Legal complications: Missing required notices or failing to follow statutory procedures can void the certificate or delay deed issuance.

Why Franklin County is a Top Choice for Tax Lien Investors

Economic and Tax Advantages

• Growing population: The county’s population increased by about 2.5 % between 2020 and 2024, supporting demand for housing.
• Diverse economy: Manufacturing, health care, retail, and agriculture contribute to a balanced local economy.
• Strategic location: Proximity to St. Louis via Interstate 44 provides access to major markets and transportation corridors.
• Predictable auction calendar: State law sets the auction on the fourth Monday in August at around 10 a.m., giving investors time to plan.

Real Estate Market Overview

The county offers a mix of suburban homes, rural farms, and riverfront properties. Median home values are modest compared with national averages, and many parcels are held long term. Growth around Union and Washington has led to increased demand for housing. Investors in tax liens may gain access to lots with development potential, vineyards or recreational land. Because properties vary in size and use, careful research is vital to assess resale opportunities.

Conclusion

Franklin County, Missouri, conducts tax lien sales under state rules that provide investors with clear procedures and the opportunity for attractive returns. Auctions are held once a year on the fourth Monday in August at the county commission office in Union, and bidders must be Missouri residents. Investors bid above the delinquent tax amount and earn 10 % interest on redeemed taxes. With a one‑year redemption period, the process balances owner rights with investor incentives. Franklin County’s steady population growth and diverse economy enhance the appeal of its tax lien certificates. Remember to conduct thorough due diligence, plan for redemption, and adhere to all registration requirements.

Pro Tips

• Arrive early: Registration opens about 30 minutes before the auction. Arriving early ensures you complete paperwork and get a bidder number.
• Bring proof of residency: Only Missouri residents can bid, so carry a driver’s license or other state‑issued identification.
• Budget wisely: Determine your maximum bid ahead of time. Bidding wars can reduce returns, so know when to stop.
• Track subsequent taxes: If the owner does not redeem within a year, you may need to pay future taxes to protect your lien. Keep funds ready to maintain your position and earn 8 % on those payments.
• Stay organized: Record deadlines for sending notices and performing a title search. Missing a step can void your investment.

FAQs for Franklin County Tax Lien Investors

Useful Links

• Franklin County Collector’s Office: Official site – contact information and general tax resources.
• Missouri Tax Sale Statutes: Revisor of Missouri – Section 141.550 – legal requirements for tax sales.
• Morgan County Tax Sale Guide: Example county instructions – shows typical Missouri sale procedures.
• Tax Sale Resources Profile: Franklin County data – contact details and research tools.

Need a Hand?

Investing in tax liens can be rewarding, but it involves detailed steps and local rules. If you need guidance, feel free to book a call with us. Our team offers free resources, explains the auction calendar, and can help you get familiarized with Missouri tax lien investing. Whether you need help researching parcels or understanding redemption procedures, we invite you to learn more and explore our investment resources.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded