How to Buy an RV Park at Auction: Tax Liens, Foreclosures & Bankruptcy Sales

The best deals in RV park investing don't come from LoopNet. They come from owners who have run out of road — people who can't pay their property taxes, can't service their mortgage, or are liquidating through a bankruptcy proceeding. When those situations tip into a court or county process, the property goes to auction. And auctions are where sophisticated buyers purchase parks at prices that simply don't exist in the normal market.

The catch: auction buying is complicated. There are three completely different processes — tax lien/deed sales, foreclosure auctions, and bankruptcy 363 sales — each with different rules, different title risks, different timelines, and different levels of due diligence access. Most investors avoid them because they don't understand how they work. That gap is your opportunity.

This guide breaks down all three in detail: how to find deals, how each process runs, what title risks to watch, and how to structure bids that win without overpaying.

Why RV Parks End Up at Auction

RV parks are small businesses wrapped around real estate. When the business fails, the real estate follows it into distress. The most common paths to auction:

• Unpaid property taxes. A mom-and-pop owner loses their health, goes through a divorce, or simply stops caring. Property taxes accumulate. After 1–5 years depending on the state, the county starts the tax sale process.
• Defaulted mortgage. A park bought with SBA financing or a commercial loan can't cover debt service — maybe occupancy dropped, maybe the owner over-leveraged on acquisition. The lender forecloses.
• Business insolvency. An operator with multiple parks, heavy debt, or a failed expansion files for bankruptcy. The bankruptcy court liquidates the assets to pay creditors.
• Divorce or estate disputes. Co-ownership breaks down. No one can buy the other out. A partition action or probate forces a sale through the courts.

In all cases, the seller is no longer a rational market participant making a free choice. They're responding to a legal process. That asymmetry is what creates the discount — and also what creates the complexity.

Tax Lien and Tax Deed Sales

How property tax delinquency works

Every county in the US assesses property taxes annually. When those taxes go unpaid, the county places a lien on the property. After a statutory period — anywhere from 1 to 5 years depending on the state — the county takes action. There are two models:

• Tax lien states (FL, AZ, CO, NJ, and others): The county sells the lien to an investor at auction. The investor earns interest (set by state law, up to 18% in some states) while the owner retains possession. If the owner doesn't redeem within the redemption period, the lien holder can foreclose and take the property.
• Tax deed states (CA, TX, NY, MI, and others): After the redemption period, the county auctions the property itself — a tax deed — to the highest bidder. The winning bidder receives a deed and actual ownership.
• Hybrid states: Some states use a mix or have county-by-county variation. Always verify your state's specific process with a local attorney before bidding.

Tax lien investing on RV parks

Buying tax liens on RV parks is a niche strategy. You're not buying the park — you're buying the right to earn interest, with the option to foreclose if the owner doesn't redeem. The interest rates by state:

State	Interest Rate (Max)	Redemption Period	Notes
Florida	18% (bid down at auction)	2 years	High competition; rates often bid to 0–3%
Arizona	16%	3 years	Less competition than FL; good rural inventory
Colorado	9–15%	3 years	Rates set at premium bid auction
New Jersey	18% + 6–18% penalty	2 years	Dense market; high minimum bids
Iowa	2% per month (24% annual)	2 years	High rate but redemption rate also high

The practical reality: most RV park owners do redeem their liens because the property is worth far more than the tax debt. Your return in that case is the interest income. The "get the park below market" outcome requires the owner to actually fail to redeem — less common, but it does happen with neglected or abandoned parks.

Tax deed auctions: buying the property directly

Tax deed auctions are where the deep discounts live. If an owner has let a park go to tax deed sale, they've already functionally surrendered the property. The county is selling whatever it has — which means title is often imperfect and encumbrances may survive.

The typical process:

1. County lists delinquent properties (usually online or at the courthouse)
2. Auction date is set — public notice required under state law
3. Bidders register and submit a deposit (5–10% of minimum bid)
4. Auction runs online or in-person
5. Winner pays balance within 24–72 hours
6. County issues a tax deed

Foreclosure Auctions

Judicial vs. non-judicial foreclosure

When a mortgage lender forecloses on an RV park, the process runs differently depending on state law:

• Judicial foreclosure states (FL, NY, NJ, IL, etc.): The lender files a lawsuit. The case proceeds through court. A judge issues a judgment, and the property is sold at a sheriff's sale or clerk's sale. The process takes longer (6 months to several years) but the court-supervised sale better extinguishes junior liens.
• Non-judicial (trustee sale) states (CA, TX, AZ, CO, etc.): The lender uses a deed of trust and a power-of-sale clause. No court required. The trustee gives notice, waits the statutory period, and holds a trustee's sale. Faster (90–180 days typically), but title risks are higher and due diligence access is minimal.

What happens at a foreclosure auction

The foreclosing lender sets a minimum bid — usually the outstanding loan balance plus fees. Third-party bidders compete above that. If no one bids above the lender's minimum, the lender takes the property back as REO (Real Estate Owned). That creates a separate opportunity: buying foreclosed RV parks directly from lenders post-auction.

At a live foreclosure auction, you're typically bidding without:

• Interior inspection access
• Title insurance commitment in hand
• Full financial records from the prior owner
• Certainty about which liens survive

This is why foreclosure auctions reward investors who do their homework before the gavel drops. Understanding RV park due diligence and running it fast from public records is how you win here.

Buying lender REO (post-foreclosure)

When an RV park doesn't sell at auction, it becomes REO — the lender owns it. Community banks and credit unions are not in the campground business. They want out. REO purchases typically offer:

• Negotiation with a motivated seller (the bank's asset manager)
• Title insurance available (often with exceptions)
• Inspection access (the lender wants you to buy)
• Discounts of 10–25% depending on how long it's been on their books

REO is more approachable than a live auction for investors newer to distressed acquisitions. Track community bank foreclosure listings through your state banking regulator's public notices and through FDIC's failed bank asset sales for federally-failed institutions.

Bankruptcy 363 Sales

What is a 363 sale?

When an RV park operator files for Chapter 11 (reorganization) or Chapter 7 (liquidation) bankruptcy, the bankruptcy court oversees asset disposition. Under Section 363 of the US Bankruptcy Code, the debtor or trustee can sell assets "free and clear" of most liens, claims, and encumbrances — with the court's approval.

This is the cleanest form of distressed asset acquisition available. The process:

1. Debtor or trustee hires a broker and runs a marketing process
2. A stalking horse bidder emerges — the first buyer who sets the floor price and terms
3. Court approves bid procedures, overbid increments, and auction date
4. Other qualified bidders submit competing bids
5. Auction runs, often in the courtroom
6. Winning bid goes to court for approval
7. Title transfers free and clear of most pre-bankruptcy claims

Advantages for RV park buyers

• Clean title: The sale order extinguishes most liens. Secured creditors are paid from proceeds. Materially less risky than foreclosure auction or tax deed.
• Due diligence access: Debtors typically provide data rooms with financial statements, leases, permits, and environmental reports. You can actually underwrite the deal before bidding.
• Court oversight: Transparent, structured, with an established timeline.
• Motivated creditor base: Creditors want maximum recovery. They negotiate earnest money, inspection periods, and closing conditions more flexibly than typical sellers.

The stalking horse strategy

The stalking horse bidder sets the floor. In exchange for negotiating a deal early (before the court-run auction), they typically receive:

• A break-up fee of 1.5–3% of purchase price if outbid
• Expense reimbursement for due diligence costs
• Negotiated bid protections in the court order

Being the stalking horse means you've done your due diligence, set the terms, and get paid if someone else wins. Not a bad position. For a larger park, the break-up fee alone can be $50,000–$150,000.

Side-by-Side: Which Channel Is Best?

Channel	Typical Discount	Title Risk	DD Access	Timeline	Competition
Tax Lien	Interest income; property if unredeemed	High	None	2–5 years to ownership	Medium–High
Tax Deed	30–60%	Very High	None	Days after auction	Low–Medium
Foreclosure (Judicial)	15–35%	Medium	Minimal	Weeks after auction	Medium
Foreclosure (Trustee)	15–30%	High	None	Days after auction	Medium
Lender REO	10–25%	Low–Medium	Good	30–90 days	Low
Bankruptcy 363	10–20%	Low (court-cleared)	Full data room	45–90 days	Medium

The discount and the risk track each other. Tax deed sales have the biggest discounts and the most title risk. Bankruptcy 363 sales have the cleanest process and the smallest discounts. Where you play depends on your risk tolerance, your legal team, and your ability to underwrite with incomplete information.

Title Risk: The Detail That Kills Auction Deals

More investors have been burned by title issues on auction purchases than by overbidding. Here is the lien priority map for RV park acquisitions across sale types:

Lien Type	Survives Tax Deed?	Survives Judicial Foreclosure?	Survives Bankruptcy 363?
IRS / Federal Tax Liens	Usually YES (120-day redemption right)	Usually YES if senior to mortgage	Generally NO (free & clear order)
First Mortgage (senior)	May survive (state-dependent)	NO when foreclosing lender holds it	Generally NO
Junior Mortgages / HELOCs	May survive	Extinguished in judicial process	Generally NO
Mechanic's Liens	State-dependent	Extinguished if junior to foreclosing lien	Generally NO
HOA / POA Assessments	Often survive	State-dependent	Generally NO
Environmental Cleanup Orders	Often survive	Often survive	Often survive (CERCLA supersedes)

Environmental cleanup obligations deserve special mention. CERCLA (the federal Superfund law) imposes cleanup liability on current property owners regardless of how they acquired it. Buying a contaminated RV park at auction does not eliminate your environmental cleanup obligation. If you're bidding on a park near an industrial area, dry cleaner, or fuel storage, environmental due diligence is non-negotiable — even at a tax deed sale where access is minimal.

Title insurance after auction purchases

Standard title insurance policies won't cover properties purchased at tax deed auction — the risk is too high. You have two options:

• Quiet title action: File a lawsuit to establish clean title. Takes 3–12 months and costs $3,000–$15,000 in legal fees, but produces an insurable title at the end.
• Hold and wait: Some title companies will insure a tax deed after 1–3 years without adverse claims, depending on the state. You're effectively seasoning the title.

Budget for one of these in your acquisition underwriting. The title cure cost should come directly off the discount you're receiving at auction.

Due Diligence at Auction (Limited Access Strategies)

You can't walk the property before a tax deed auction. You often can't before a foreclosure auction either. But you're not flying blind. Here's what's available from public sources:

• County assessor records: Site count, acreage, assessed value, last sale price, year built. Free online in most counties.
• County GIS / parcel maps: Property boundaries, zoning designation, flood zone status. Essential for understanding what you're actually buying.
• Preliminary title report: $50–$150 from a title company. Shows recorded liens, easements, and encumbrances without committing to a full policy.
• Environmental databases: EPA ECHO, state environmental agency sites, and historical aerials (USGS or Google Earth) for fuel storage, industrial neighbors, or visible contamination.
• Utility records: Request from the county or utility provider whether the park is on public water/sewer or private well/septic. Affects value significantly — see our guide on RV park infrastructure risks.
• Satellite and aerial imagery: Google Maps, Bing Birds Eye, and historical imagery reveal site conditions, occupancy levels, and deferred maintenance from the outside.
• Drive-by: If the auction is nearby, drive the property. You can assess exterior condition, current occupancy, access roads, and neighborhood without entering.

For foreclosure and REO properties, also request the current rent roll, last 2 years of operating statements, existing permits and licenses, and status of any pending code violations or zoning issues. Lenders holding REO are often willing to provide this — the bank wants to sell.

Bidding Strategy and Walk-Away Math

The cardinal rule of auction bidding: know your number before you walk in and don't move off it. Competitive auction environments create psychological pressure to chase. The investor who wins by bidding past their walk-away price often wins badly.

Build your maximum bid from the property's stabilized value:

1. Estimate stabilized NOI. What are comparable parks charging per night? What's realistic occupancy? Multiply sites by occupancy by rate by 365, subtract a 40–50% expense ratio. See how much an RV park makes for the full framework.
2. Apply market cap rate. Divide NOI by local cap rate. For most rural parks, 9–11% is the right range. See cap rates by state for regional benchmarks.
3. Subtract your required discount. If you need 25% below market to hit your return target, that's your ceiling. $1M market value = $750K max bid.
4. Subtract title cure costs. $5K–$25K for quiet title or insurance premiums, depending on sale type.
5. Subtract deferred maintenance. From your drive-by and public records, build a rough capex budget. Infrastructure needs come off your price ceiling.
6. That is your walk-away number. Write it down. Don't bid above it.

How to Find RV Parks Going to Auction

Distressed RV park opportunities don't announce themselves. You have to actively monitor multiple channels:

• County tax sale lists: Most county tax collectors publish delinquent property lists annually or quarterly. Search "[county name] delinquent tax sale list" or "[county name] tax certificate sale."
• State online tax auction websites: Many states now run centralized online auctions. Florida: real.fcttax.com and county-specific sites. Texas: varies by county. California: individual county sites.
• Foreclosure notice databases: ATTOM Data, PropertyRadar, and RealtyTrac aggregate NOD (notice of default) filings. Filter by commercial/hospitality property type. Paid services, but worth it if you're actively sourcing distressed deals.
• Courthouse postings: In non-judicial states, trustee sale notices are physically posted at the county courthouse. Some investors hire local runners to photograph them weekly.
• PACER for bankruptcy: pacer.gov lists all federal bankruptcy filings. Create alerts for Chapter 11 and 7 cases in your target states. Search "campground," "RV park," or "recreational vehicle" in case descriptions.
• Ten-X and Bid4Assets: Commercial real estate auction platforms handling REO and government tax sales.
• Auction.com: Foreclosure and REO sales for major lenders. Searchable by property type and location.
• Local hospitality brokers: Often know about distressed situations before they hit public processes.

The Better Move: Contact Owners Before Auction

Everything above describes how to compete at auction. But the best outcome is to never get there.

An RV park owner 90 days from a foreclosure sale or 6 months from a tax deed auction is in a fundamentally different position than an owner with no pressure. They've often already mentally surrendered the property. A direct offer at 30–40% below market may look attractive compared to losing it entirely and potentially still owing a deficiency judgment.

The playbook: find owners using property records, reach them via verified contact data, identify distress signals early (NOD filings, delinquent tax lists), open with empathy, and offer certainty — cash, fast close, no contingencies. Pre-auction direct deals are harder to find but easier to win. No competing bidders. Full due diligence access. Normal title insurance.

For the negotiation side of distressed acquisitions, see our full guide on how to negotiate an RV park purchase. For the outreach side, see cold calling scripts that actually work with motivated sellers.

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Frequently Asked Questions

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