Tax Lien Foreclosure Sales - Tax Lien Investment

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“WE WILL BE MOVING INTO OURNEW HOUSE WITHIN 3 WEEKS.
Thank you for all your help($268,000 with pool appraised at $439,000 3 upstairs and 3 downstairs,brand new pool).”

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Cartersville, Georgia

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How Tax Lien Foreclosure Sales Work

When it comes to foreclosures, sometimes it’s not the mortgage but the taxes that homeowners can’t pay. A tax lien foreclosure means a property becomes controlled by the government. For those looking for tax lien info, it is important to understand that this type of foreclosure leaves few options for a homeowner. The government, whether it’s on the local, state or federal level, is going to get their money or sell the property. Once the government proceeds with a tax lien on a property, there are a few possible outcomes depending on state laws.

Tax Lien Certificate

Tax lien investing is very different from other types of foreclosure investments, but can be very lucrative. In some states the government sells what is called a tax lien certificate, which represents the unpaid taxes on a property. The government wins by having the tax bill paid and the tax lien investment makes money off the interest that the government pays the lien holder. The homeowner has a specified time to repay the lien or the home will be sold at a tax lien auction.

Tax Deed Sale

This is the other type of tax lien investing known as a tax deed sale. After a homeowner has not paid the tax debt in some states or reimbursed the tax lien certificate in other states, the government can sell the property in a public auction. Generally speaking, the bidding starts at the amount of the taxes owed, plus any interest and costs associated with selling the property. Some states allow homeowners a redemption period after that sale that gives them a short window of time to repay the lien and reclaim the property.

Investing in tax liens, while offering substantial returns, is not for everyone. It takes a flexible investor who understands that even after all the time and effort they make not walk away with anything more than the interest earned on the tax lien certificate. Take the time to research government tax foreclosure information on both government websites and other online sources. Keep in mind that there are other types of government foreclosure properties, not just tax liens.