Forum : How does the redemption period work?

A tax lien certificate is simply a lien – the investor who holds it gets “rewarded” by the homeowner who pays interest and penalties to the investor.

Once you obtain the lien there is a redemption period during which the homeowner must pay hs taxe (plus interest and penalties).  If he does not pay off the tax lien during the redemption period, the investor has the right to foreclose on the property.