3 Tricks For Investing In Tax Deeds In Philadelphia

Last Updated on September 6, 2025

Three Practical Tips for Winning Philadelphia Tax Deed Auctions

We recently returned from a three‑day Philadelphia tax‑deed auction where our team bought eight properties. That experience reinforced how different tax‑deed investing is in the city compared with other counties. Philadelphia is a tax‑deed jurisdiction governed by the Municipal Claims and Tax Liens Act (MCTLA). When a home is sold for unpaid taxes, the former owner generally has nine months to redeem it by paying back taxes and expenses, plus 10 % interest on the winning bid. This nine‑month right of redemption only applies to non‑vacant properties—vacant properties cannot be redeemed. Below are the three key practices we followed before bidding, along with additional resources and common questions.

What makes Philadelphia’s tax‑deed process unique?

Philadelphia’s tax‑deed auctions follow the MCTLA. Buyers receive the deed after the sheriff acknowledges the sale, but former owner‑occupants can redeem the property within nine months. They must repay the purchase price, taxes and costs with a 10 % premium. This redemption right does not exist in some states; for example, Texas homestead and agricultural properties have a two‑year redemption period with premiums of 25 % in the first year and 50 % in the second, while commercial properties have 180 days with a 25 % premium. Georgia requires the redeemer to pay the purchase price plus taxes and a 20 % premium in the first year and 10 % for each additional year. Understanding these variations helps investors evaluate risk and returns across different markets.

How can we avoid wasting time by checking the auction list?

In Philadelphia, the county’s auction roster can change daily as owners pay their taxes or file bankruptcy. We learned that about one in four properties on the preliminary list may be removed before auction—a recent sale saw roughly 150 of 600 properties cancelled or “stayed.” To avoid spending hours driving to properties that disappear, we follow these steps:

• Check the official list every few days. Updates appear on the county’s website, but they are often delayed.
  
• Use attorney websites for up‑to‑date status. Law firms contracted by the city—such as Linebarger or GRB—often publish cancellations and postponements sooner than the county. Bookmark these pages and cross‑reference them.
  
• Confirm status during property visits. When our team drives properties, one member checks the online list in real time to see whether the property has been cancelled, postponed or stayed.
  
• Recheck the list the morning of the sale. Last‑minute stays are common; we update our bidding plan accordingly.
  

By routinely verifying the list, we focus our due diligence efforts on properties that will actually go to auction.

Why should we check the Licenses & Inspections (L&I) database?

Philadelphia’s Department of Licenses & Inspections maintains an online “L&I Property History” search. This free tool lets you check a property’s permits, licenses, code violations and appeals. Here’s how we use it:

1. Search by address on the L&I Property History site. Look for major violations such as collapsed roofs, unsafe walls or vacant‑property orders.
   
2. Cross‑reference with eCLIPSE. The city’s eCLIPSE portal provides permit and license information. If a property has multiple unresolved violations, the costs may outweigh the potential profit.
   
3. Use the Atlas map for context. The Philadelphia Atlas map overlays property data on a map and shows assessments, zoning and historical information.
   
4. Eliminate high‑risk properties. If a roof has collapsed or there is a long history of structural violations, we remove the property from our list and save time.
   

This simple check helps us avoid inheriting major structural problems that could erode profits.

How do we handle title research before bidding?

Performing a preliminary title search protects you from unknown liens and lawsuits. A property title identifies the owner and records details such as deeds, mortgages, tax liens and court judgments. We recommend the following:

• Order a low‑cost title report. Several companies provide quick reports for a small fee. These reports reveal the county’s assessed value, existing liens and other encumbrances.
  
• Understand what a title search covers. A thorough search reviews deeds, land records, tax liens, divorce proceedings, bankruptcies and more. It lists specifics about the property—location, ownership, and any charges or mortgages.
  
• Hire a real estate attorney or title professional when necessary. While you can perform your own search, attorneys have experience navigating courthouse records and online databases.
  
• Use the report to assess risk. If there are outstanding mortgages or judgment liens, you may need to bring a quiet title action after purchase. Factor this cost into your bidding strategy.
  

Investing in a title search helps you avoid hidden debts and ensures the property can be transferred cleanly.

Comparing redemption premiums across states

To put Philadelphia’s 10 % interest penalty in perspective, we analyzed redemption premiums in a few states. The bar chart below summarises the penalties investors receive if owners redeem their properties:

In Philadelphia (for non‑vacant property) the redeemer pays 10 % interest on the winning bid. Texas investors earn a 25 % premium if an owner redeems a homestead or agricultural property in the first year and 50 % in the second; commercial properties offer a 25 % premium with a 180‑day redemption period. Georgia law requires a 20 % premium in the first year and 10 % for each subsequent year. Understanding these differences helps investors compare returns and gauge how long their capital may be tied up.

Additional tips for Philadelphia tax‑deed investors

• Drive the properties. Photos can be misleading. Walk around the neighborhood to assess condition, occupancy and market demand.
  
• Check occupancy status. The nine‑month redemption applies only to owner‑occupied properties. If a property has been vacant for at least 90 days, there is no redemption right.
  
• Understand auction types. Philadelphia holds “Upset Sales” (initial sales for unpaid taxes) and “Judicial Sales” (second sales for properties not sold at upset sale). Redemption rules may differ; confirm with the sheriff’s office.
  
• Prepare financing. Some auctions require full payment on the day of sale; others allow a deposit with final payment due within a week. Have certified funds ready.
  

Frequently asked questions

Next steps

Tax‑deed investing can be lucrative, but success requires research, patience and a clear plan. By regularly checking the auction list, using the city’s L&I tools and ordering a title search, you can avoid costly surprises. For deeper guidance, see our post on How to Pick Properties for Tax Deed Sales—it walks through property scouting, due diligence checklists and common mistakes, naturally promoting our other blog posts. If you’re ready to accelerate your learning, grab our free mini‑course and schedule a call with our team to receive a personalized investment plan. We look forward to helping you on your journey to finding profitable tax‑deed deals.