How To Buy House Tax Lien
Often a property tax lien will take precedent as the first lien over the mortgage.
How to buy house tax lien. In 2017 approximately 14 billion in property taxes were not paid according to brad westover executive director of the national tax lien association ntla. A tax lien represents an unpaid tax debt on a property. Tax liens by the numbers. There are plenty of opportunities to buy property tax liens. Such a certificate rather than the actual home is sold at the tax lien sale to the highest bidder.
If a property owner does not pay their taxes within a certain time period it varies by jurisdiction tax collectors will put the unpaid taxes up for auction. Buying these properties in tax deed sales can be a great investment. The municipality in which the property is located issues a tax lien certificate. Every year more than 7 5 million taxpayers fail to pay their property taxes on time accounting for over 15 billion in lost revenue. It is through this auction process that you have the opportunity to purchase a tax lien.
After a certain period of time if the back taxes are not paid the property can be seized and sold to pay the debt.