What are tax lien certificates, and why should I invest in them?
By definition, a lien is a legal term that represents the right to gain possession of someone else’s property until the owner of the property fulfills a legal duty to the person holding the lien, such as payment of property taxes. With tax liens, local governments have the right to lay claim to people’s property when they do not pay their property taxes. Why don’t property owners pay? The most common reason why an owner doesn’t pay is because they do not have enough money for the taxes, or the owner is just putting off paying them. Whether they’ve recently lost their job or are simply strapped for cash, some people fail to pay their property taxes on time, just as they might fail to pay their electric or gas bill. The problem is local governments depend on the revenue generated by property taxes to provide services and run their day-to-day operations, like repairing roads, funding schools, and paying for law enforcement. Property taxes can make up to 50% of a county’s revenue. If prope
