Lincoln County, Arkansas Tax Deed Auctions Investor Guide

Lincoln County is part of Arkansas’ tax-deed system. This is different from a tax lien system. In a tax-deed state, if someone does not pay their property taxes for one year, the county collector sends the property details to the Commissioner of State Lands. After that, the Commissioner takes care of the land and sells it at a public auction.

For people looking to invest, tax-deed auctions can be a good chance. You can buy properties for the amount of unpaid taxes plus some fees. This guide explains how Lincoln County’s tax deed auctions work. It includes important dates and steps you need to know. It also talks about why Arkansas’ property market is interesting for smart investors.

Brief overview of Arkansas tax‑deed investing

• Tax deed vs. tax lien – why it matters: Arkansas is a tax deed state. When a property owner fails to pay real estate taxes, the county transfers legal title to the state. The COSL then sells the property at a public auction. Investors do not purchase a lien and collect interest; instead, the winning bidder receives a limited warranty deed and, after a 90‑day litigation period, may quiet title to obtain marketable ownership.
  
• Redemption rules: Until July 1 2023, delinquent owners could redeem after the auction. Today all sales are final—redemption must occur before 4 p.m. on the last business day prior to the sale date. After that deadline, the property cannot be redeemed; only limited legal challenges (within 90 days) remain. To redeem, an owner must pay all taxes plus 10 % simple interest and a 10 % penalty per year.
  
• Auction type: Arkansas sells tax‑deed properties, not tax lien certificates. Unsold parcels are offered online at “unsold‑property auctions,” sometimes at negotiated prices.
  
• Open access: Investors who are U.S. residents and have valid identification may participate. Non‑U.S. residents and former owners are barred from bidding.
  

Important details for Lincoln County 2025

State tax lien/deed investing highlights

• Quick transfer of ownership: Because Arkansas is a tax‑deed state, investors receive a deed to the property rather than a lien. This reduces the waiting period and offers the opportunity to take possession and resell after clearing title.
  
• Penalties and interest benefit the county, not the bidder: Delinquent owners must pay 10 % simple interest plus a 10 % penalty per year to redeem, which discourages redemption. Investors do not earn these rates directly but benefit from the high redemption threshold.
  
• 90‑day litigation period: A buyer receives a limited warranty deed and must wait 90 days for potential legal challenges. After the litigation period the buyer may quiet title through a court action to obtain clear ownership.
  
• Research is essential: The COSL emphasizes that it does not guarantee clear title, access or usability of any parcel. Bidders should research liens, easements, taxes and property condition and consider performing a title search.
  

Unique features of Arkansas tax deed investing

Arkansas is a state with low property prices and a strong economy. It’s home to big companies like Walmart and Tyson Foods. The state grows a lot of food, including rice and poultry. There’s also oil, gas, and tourism from its beautiful parks. 

In Lincoln County, the soil is good for farming, and living costs are low, making it a smart place to invest. The state has about 3 million people. Arkansas isn’t just famous for its farming; it also has fun laws. For example, once a property goes to auction, it can’t be redeemed after that day. 

The state is known as “The Natural State” due to its beautiful landscapes, with many parks and rivers. People enjoy local events, and Lincoln County offers fishing and hunting. Arkansas has a good transportation network, including highways and airports, making it easy to reach. 

The economy is growing in areas like food processing and machinery. Unemployment is low, so more people have jobs. Urban places like Little Rock bring fun activities, while nature lovers enjoy the outdoor adventures in Lincoln County.

Why Lincoln County is attractive for tax‑deed investors

• Affordable entry price: Minimum bids start at the amount of delinquent taxes and fees, often far below market value. For example, at the 2025 Lincoln County auction, winning bids ranged from $267.96 to $26,000—much less than typical sale prices for improved properties.
  
• Quick path to ownership: Investors can obtain a limited warranty deed at the auction and, after the 90‑day litigation period, file a quiet‑title action to secure full ownership rights.
  
• Potential high returns: Because properties are sold for unpaid taxes, the margin between purchase price and market value can be significant. Investors may renovate and resell, lease the property, or hold for appreciation.
  
• Low carrying costs: Arkansas’s property taxes are modest compared with those of many states. In addition, the cost of living is low, and there is strong demand for rental housing driven by local employers.
  
• Diverse opportunities: Parcels offered range from agricultural tracts and timberland to residential lots and commercial properties. The 2025 catalog shows both small town lots and large tracts across multiple counties, providing options for different investment strategies.
  

Understanding the Arkansas tax‑deed sale process

How the auction works

1. Certification: When a property owner fails to pay real estate taxes, the county collector certifies the parcel to the COSL after one year of delinquency.
   
2. Notice: The COSL publishes notice of the upcoming sale and mails notice to the owner and known interested parties. Owners may redeem the property by paying all taxes and fees before 4 p.m. on the last business day before the sale.
   
3. Auction: The COSL holds live auctions between July and October. In 2025 the Lincoln County sale occurs on August 12 at 10 AM. Each parcel is offered in numerical order; bidders must register before the auction and bid orally or online. The minimum bid equals the total delinquent taxes, penalties, interest and costs.
   
4. Payment & deed: The winning bidder pays the full amount immediately (no cash). For online sales the system charges $100 earnest money and the balance is due within 10 business days. The COSL records a limited warranty deed and mails it to the buyer.
   
5. Litigation period: Former owners have 90 days to contest the sale. After that, the buyer may file a quiet‑title action to obtain marketable title.
   

Expected returns on Arkansas tax‑deed certificates

Investors buy the deed, not a lien, so there’s no set interest rate. They earn money by buying land for much less than its worth and then selling, renting, or developing it. For example, someone might buy land for $400 and later sell it for thousands. In Arkansas, investors usually keep their winning bids, as redemption must happen before a sale. This helps them make a profit more easily.

Foreign investor participation

Arkansas restricts participation to bidders whose home of record is in the United States. Non‑U.S. residents may not purchase tax‑deed properties at COSL auctions. Therefore, investors outside the U.S. should look at other states or work with local partners.

Importance of due diligence

Before buying land, it’s important to do your research. Check where the land is, how big it is, and if you can get to it. Look for easements, utilities, and zoning rules. Make sure there are no debts or taxes on it. Hiring a title company or lawyer can help with this.

If you don’t do this, you might end up with land that’s hard to use or even landlocked. In Arkansas, buying land doesn’t guarantee it’s trouble-free, and you might need to spend extra money to fix ownership issues. Doing your homework helps you avoid bad surprises later.

Buying over‑the‑counter (OTC) liens/deeds in Arkansas

After live auctions, unsold properties go on an online list. People can bid starting from the unpaid taxes. To bid, they must sign up and verify their identity. The auction lasts for 30 days after the first bid. If someone wins, they pay $100 for each property as a deposit, with the full amount due in 10 days. This method has several benefits.

• No competition: Many parcels receive no bids at the live sale, so investors may face little or no competition.
  
• Fixed pricing: The minimum bid equals the delinquent taxes; there is no bidding war.
  
• Flexible timing: Online auctions are ongoing; investors can browse and bid at any time.
  

However, unsold parcels may have defects—careful research is crucial.

Pro tips for Lincoln County tax‑deed investors

1. Arrive early on sale day: Registration starts 30 minutes before the auction; come prepared with your ID and checkbook or debit card.
   
2. Set a budget: Determine your maximum bid based on expected resale value and the cost of quieting title, insurance and improvements.
   
3. Research before bidding: Use DataScoutPro for parcel maps and the county assessor’s records for property details.
   
4. Check for municipal liens: Some city liens, improvement district fees or IRS liens may survive the sale.
   
5. Plan for quiet‑title action: Budget legal costs to obtain marketable title after the 90‑day litigation period.
   
6. Stay informed: Monitor the COSL auction catalog and sign up for notifications. Dates and venues can change year to year; 2025’s Lincoln County sale is at Second Baptist Church in Monticello, but future auctions may be elsewhere.
   
7. Consider holding rather than flipping: Rental demand in Lincoln County and nearby Monticello can provide steady income, especially for affordable single‑family homes or small agricultural tracts.
   

Frequently asked questions

Q: Do I need to register?
A: Yes. Live bidders register 30 minutes before the auction and must bring a valid photo ID. Registration is free. Online bidders must create an account at auction.cosl.org, verify their ID, and add a payment method.

Q: Is there a deposit?
A: At live auctions, you pay in full on the spot—no deposit or cash accepted. Online auctions charge $100 earnest money per parcel to your card, with the balance due in 10 business days by certified funds.

Q: How does bidding work?
A: Each parcel opens at the minimum bid (taxes, penalties, and costs). Bidders compete until the highest bid wins. Live sales use oral bidding; online sales use timed bidding over 30 days.

Q: Can property owners redeem after the auction?
A: No. Owners can only redeem until 4:00 PM the last business day before the sale. After that, the sale is final. Buyers receive a limited warranty deed, recorded in the county.

Q: Can the sale be challenged?
A: Yes. There is a 90-day litigation period after the deed is issued. That’s why many investors wait before making major improvements.

Useful links

• Lincoln County Website 
• State of Arkansas Commissioner of State Lands
• Arkansas offers a wealth of opportunities with Tax Deed Investing
• Let’s talk about Tax Deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Need a hand?

Lincoln County auctions are listed now in our Auction Calendar. Explore what’s available and use our free resources to guide your decisions. If you’d like direct help understanding the steps or planning your next move, just Book a call and speak with an expert.

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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