Florida tax deed sales and mortgage foreclosure auctions are two different processes under two different chapters of the Florida Statutes. A foreclosure auction sells a property because a mortgage went unpaid, under Chapter 45. A tax deed sale sells a property because property taxes went unpaid, under Chapter 197. The deposit rules differ, and so does what happens to liens against the property.
| Statute | Foreclosure: Fla. Stat. Ch. 45 | Tax deed: Fla. Stat. Ch. 197 |
|---|---|
| Why it is sold | Foreclosure: unpaid mortgage | Tax deed: unpaid property taxes |
| Deposit | Foreclosure: 5% of the final bid | Tax deed: $200 or 5% of the bid, whichever is greater |
| Liens | Foreclosure: junior liens are generally extinguished | Tax deed: conveys subject to certain surviving liens |
A tax deed sale is a public auction held when property taxes on a parcel go unpaid. It is governed by Chapter 197 of the Florida Statutes.
The property is sold to recover what is owed. The winning bidder receives a tax deed.
A mortgage foreclosure auction is held under Chapter 45 because a borrower stopped paying a mortgage. A tax deed sale is held under Chapter 197 because taxes went unpaid.
Different statute, different reason the property is being sold, and a different pool of bidders. The two are frequently confused because both are public auctions of Florida real estate.
A nonrefundable deposit is due at the time of sale - commonly $200 or 5% of the bid, whichever is greater.
That differs from a foreclosure auction, where the deposit is 5% of the final bid.
Some do. Tax deed sales convey the property subject to certain surviving liens. That is a material difference from a mortgage foreclosure sale, where junior liens are generally extinguished by the sale.
This single difference is the most common reason a tax deed purchase costs more than the winning bid suggested.
They are different products with different risk. A foreclosure auction generally delivers cleaner title but competes against buyers who understand that. A tax deed sale can price lower precisely because the lien position needs more work to understand.
Neither is better in the abstract. The relevant question is which risk you are equipped to evaluate before you bid.
Yes. Both Chapter 45 foreclosure sales and Chapter 197 tax deed sales in Florida are conducted online rather than at the courthouse.
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