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A tax lien represents an unpaid tax debt on a property.
How to buy house tax lien. Every year more than 7 5 million taxpayers fail to pay their property taxes on time accounting for over 15 billion in lost revenue. 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. The municipality in which the property is located issues a tax lien certificate. When these taxes go unpaid a lien is placed on the property. There are plenty of opportunities to buy property tax liens.
After a certain period of time if the back taxes are not paid the property can be seized and sold to pay the debt. It is through this auction process that you have the opportunity to purchase a tax lien. Tax liens by the numbers. Such a certificate rather than the actual home is sold at the tax lien sale to the highest bidder. Counties across the united states charge real estate taxes.
Buying these properties in tax deed sales can be a great investment.
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