Forum : Can somebody explain tax liens in real estate to me?

Hi, I am in my 20s so I have never owned a house, I just want to know how this works? A friend of mine tells me that you can purchase a house for as little as $4000 if it has a tax lien against it? Is it true?

A property is sold by tax lien only if the taxes have gone unpaid for at least five years. The owners have received number of notifications, and had opportunity to pay their taxes but failed to do so. The county will then auction the property to recover the taxes.

The auctions have a minimum bid, but the (tax lien) sale price may exceed the dollar amount which the county is trying to recover.

Keep in mind that lien sales must be paid in full at time of sale, or within 30 days, which mean that you must have the cash ready.