Hybrid States

A hybrid state is technically a deed state although it has much in common with a lien state.

The investor actually acquires title to the property, subject, however, to the prior owner's right to redeem and get the property back. Should the prior owner redeem, the investor will receive an interest rate or penalty payment on his/her investment. The prior owner has a specified redemption period (six months to three years) to redeem the property and reacquire title.

The following are hybrid states:

Connecticut

Delaware

Georgia

Hawaii

Louisiana

Massachusetts

Pennsylvania (counties may operate under the hybrid system where the property is improved and has been legally occupied 90 days prior to the sale)

Rhode Island

Tennessee

Texas

Online Purchases

Several states are now conducting their sales online -either exclusively or in partnership with the auctions. From the state's point of view, this type of sale is faster and more economical. It can also be an advantage from an investor's point of view. One obvious benefit is that you can buy from another county or state without having to travel. Different counties have different rules on how the purchases are handled. Oh, and buyer beware with this method. You never really know what you are getting if you are not able to visually inspect it.

Virginia

VIRGINIA

Norfolk