A Florida foreclosure auction enforces a mortgage or lien judgment under Chapter 45, and bidding starts at the judgment amount. A tax deed sale happens when property taxes go unpaid and a certificate holder applies for a deed under Chapter 197, and it has a statutory opening bid. Both are run by the county clerk, but they remove different liens.
Reviewed September 19, 2026 by NEWLEVEL Investment RE, a Florida real estate brokerage.
Two different reasons for a sale
A foreclosure auction ends a lawsuit. A lender or lienholder sued, won a final judgment, and the court ordered the property sold to pay it.
A tax deed sale ends an unpaid tax bill. An investor bought a tax certificate, the owner never redeemed it, and after the waiting period the certificate holder applied for a tax deed. The clerk then auctions the property.
Where bidding starts
At a foreclosure auction there is no opening bid: bidding starts at the judgment amount. At a tax deed sale the statute fixes an opening bid made up of the unpaid taxes, interest, costs and fees, and for homestead property it adds half the assessed value.
What survives
A foreclosure removes interests junior to the foreclosed lien whose holders were joined in the case. Anything senior survives.
A tax deed is broader. It generally extinguishes private liens, including mortgages, while liens held by governmental units and certain easements survive. That breadth is why tax deeds attract buyers, and why the title afterwards needs care.
What we watch: Title insurers are often reluctant to insure a tax deed title for several years without a quiet title action. Budget for that before you plan a quick resale.
Deposits and deadlines
Tax deed rules are set by statute rather than county by county: the winning bidder posts a non-refundable deposit of $200 or 5% of the bid, whichever is greater, and pays the balance within 24 hours. Foreclosure deposits and deadlines vary by county.
- Foreclosure: Chapter 45 and Chapter 702
- Tax deed: Chapter 197
- Same clerk, often the same login, separate auction calendars
Common questions
- Does a Florida tax deed sale wipe out a mortgage?
- Generally yes. A tax deed extinguishes most private liens, including mortgages, while governmental liens and certain easements survive under Florida Statute 197.552.
- Which is better for a beginner, tax deeds or foreclosures?
- Neither is simpler. Tax deeds clear more liens but leave a title that is harder to insure. Foreclosures carry more surviving-lien risk but follow a court file you can read in advance.
What this guide relies on
- Fla. Stat. ch. 197 (tax collections, sales and liens)
- Fla. Stat. §197.542, §197.552
- Fla. Stat. §45.031
Education, not legal, tax or investment advice. Statutes and clerk procedures change, and lien priority turns on the records in a specific case. Have a Florida attorney or title company review a property before you commit money to it.