How Do You Buy Property Tax Liens?
Local governments rely on property taxes to pay for expenses. If a property owner fails to pay their property tax, there are still expenses to pay. One way governments compensate for delinquent payments is to sell property tax liens. Investors pay the delinquent property tax, and then the government has money to pay expenses. When the property owner finally pays their taxes, they pay the investor back, plus interest. If the property owner fails to pay the taxes back within a specific timeframe, the investor can foreclose on the property and gain clear title. Shop locally. When you first begin investing in real estate tax liens, stay close to home, so you can check out the property before investing. If you are relatively new to investing in real estate tax liens, purchasing liens from across the country may not be prudent. Discover if the state you are shopping is a lien state or a deed state. The process is different for each type. In a deed state, delinquent taxes are paid by auctioni
