How To Buy House Tax Lien

After a certain period of time if the back taxes are not paid the property can be seized and sold to pay the debt.

How to buy house tax lien. Buying these properties in tax deed sales can be a great investment. Tax liens by the numbers. It is through this auction process that you have the opportunity to purchase a tax lien. There are plenty of opportunities to buy property tax liens. This can mean the lender that holds the mortgage will refuse to agree to the sale unless the irs agrees to make the tax lien secondary to the existing mortgage meaning the mortgage will be paid off first and making it more likely the mortgage lien will be paid in full.

When these taxes go unpaid a lien is placed on the property. In 2017 approximately 14 billion in property taxes were not paid according to brad westover executive director of the national tax lien association ntla. 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. Every year more than 7 5 million taxpayers fail to pay their property taxes on time accounting for over 15 billion in lost revenue. Often a property tax lien will take precedent as the first lien over the mortgage.

The municipality in which the property is located issues a tax lien certificate.