Why Invest in Tax Liens?
There are several different types of tax lien investments. Each State has different tax laws about how to recover back taxes. Some will seize and sell the property deed outright, auctioning it off beginning at the cost of the back taxes. Some sell certificates that allow payments with high interest and some sell the property with the owners retaining the right to ‘redeem’ their home by full payment of the back taxes to the certificate owner. Default on all of these result in the property being auctioned off and the tax lien investors being paid off. The IRS will sell a tax certificate at a high interest rate to investors.
