There are many questions regarding the tax lien process. Most homeowners do not understand that if they don’t pay their real estate tax bills, tax buyers can end up as owners of their properties.
As a tax buyer this could be a great opportunity. When homeowners do not pay their taxes the local government starts to add interests that could be up to 18% (depending on the state). After a year or 2 the local government has the right to sell your taxes to a tax buyer. When this happens the tax buyer now has the right to collect the estate tax bill with the 18% putting a lien on your property.
Usually the homeowner has a certain time to pay off the bill before the tax buyer can start the process of inquiring the homeowner’s property. If the homeowner pays the bill you get your money back and with interest. If the homeowner doesn’t pay the tax than you get the property. Just make sure to research the property and the process of tax liens before you start investing in tax liens.
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