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The auctioneer opens the bidding at $1,000 on a tax-defaulted property. The government program has been around for 200 years and is executed by the local county government. If property taxes are not paid, the government confiscates the property and auctions it off at a low price, sometimes just covering the back taxes. The auction also cancels any existing mortgage on the property. The process is guided by state legislature and county supervisors.
