When & How Are Tax Liens Applied?

When property owners are late to pay their real estate taxes, the government will claim a lien on the affiliated property to encourage the property owner to pay their debt. To ensure that the government gets the funds they need for regular operations (schools, road repairs, and other public services), they then offer these liens to investors at public auction. While the government may claim a lien after a property owner is only a few months delinquent in paying taxes, these liens are usually not auctioned until the property owner is at least a year or more delinquent on their back taxes.

Investors purchase the liens for the cost of the back taxes owed and occasionally for more. Once the lien has been transferred from the government to the investor, the interest rate applied to that debt goes up. The property owner will have a set period of time to pay the new total (taxes, interest, and other related fees). If the property owner fails to pay within the arranged time frame, the lien now gives the investor the right to foreclose on the property.

In this way, the purchase of a tax lien may in some cases lead to the acquisition of a tax deed.

What is a Tax Lien?

If you are a home owner, then you may have a one-sided understanding of this term. The tax portion of the term typically refers to unpaid property taxes. The dictionary definition of lien is:

What you should know, pt. 4

While some people pay exorbitant sums of money and take long courses to access the information necessary to start investing in tax liens, the National Association of Tax Lien Investors directs you to everything you need to invest successfully. We aim to help you understand many of the potential complications and how to deal with them effectively while exploring some of the proven, low-risk alternatives to purchasing deeds independently. With the information on this website and through the materials we recommend, you can start making successful investments immediately. Remember one thing

What you should know, pt. 3

The National Association of Tax Lien Investors is committed to providing investors education concerning the basics of tax liens and tax lien investing. You can learn how to recognize the best tax liens, how and where to purchase them, and how to quickly and efficiently turn those purchases into a profit of up to 1,000%. Because the transaction occurs between you and another private entity, and because your investment is backed by state and federal laws, you will never have to worry about hidden fees or legal loopholes. When done correctly, tax lien investing is one of the safest and quickest ways to double your investment capital.

What you should know, pt. 2

No investment is without risks, and tax lien investing should only be done by those that have the knowledge and capital necessary to defend themselves against such risks. That does NOT mean that everyday people like you and I shouldn

What you should know, pt. 1

Tax liens have been a stable and reliable investment opportunity for over 100 years. That said, if you are like many Americans then your knowledge of tax liens comes strictly from being a home owner, or from watching late night infomercials promising you will be able to buy your dream house for $300. While more popular investment opportunities like stocks and bonds have become risky in the current economy, and while CDs and other savings plans lose much of their value to inflation, the potential for tax liens investing is actually growing.