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Tax
Lien Certificates
When
property owners due not pay their
property taxes, the county often
issues what is called a tax lien
certificate.
These tax lien certificates
are often sold at public auctions
once per year in most counties in
the United States.
During these tax lien
auctions or sales, as they are more
commonly called, investors can bid
on the certificates.
The winning bidder receives a
legal claim to the tax debt, usually
called a tax lien certificate or
certificate of purchase, that
records the amount of money due to
the investor should the property
owner pay off the debt by redeeming
the certificate.
If
the owner pays off the debt, the
owner gets their money back plus the
prevailing interest rate in the
state.
Depending on the state,
interest rates can range from as low
as 8 percent per year to as high as
36 percent per year.
If
the owner does not pay back the
certificate, then the investor often
gets the entire property for only
the taxes, penalties and interest
due.
Discover
the most comprehensive tax lien
certificate and tax deed sale
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