Read This - How to Make Money Buying Tax Liens

The most common reason why a tax lien is imposed on a property is delinquent property taxes or the inability of property owner to pay his property taxes. If you are a homeowner who has defaulted on your tax payments, then your municipality will have the right to sell the tax lien to a third party at auction. Consequently, that third party can either enforce the lien or sell it to another person if he wishes to.

Nevertheless, there are rules to follow prior to an auction. First, notifications where accrued interest and penalties have to be computed is served. The lien can only be removed if it has been paid off. Nonetheless, you can still avail of the redemption period by which you have the opportunity to look for funds to pay the back taxes and redeem your home.

Ted Thomas, America's Tax Lien Certificate and Tax Deed authority, reveals that an estimated 3 million people in America are not able to pay their property taxes. The only way counties can get money is to auction off certificates since property taxes are needed to pay for civic services. These include the libraries, schools, hospitals, police and fire departments to name a few.

Certificate for sale is by far the safest lucrative investment in America. Investing in tax lien certificates is a secure alternative to multiply your money. This is almost risk- free since it is hundred percent backed by law. Home lien sales are completely conservative investments protected by the county.

When tax defaulted properties end up in auction, that is where savvy investors buy tax lien certificates. Here, the winning bidder ends up buying the property with just the amount of back taxes. Who knows, you might also end up owning the property in the future? However, once the property owner is able to pay the default taxes, government gives back your money plus accrued interests and penalties therein.

Although it is said that 99% of all property owners redeem the taxes due the county, still you are given a high rate of return. Overall, the property owner pays 95% of all tax lien certificates sold. Obviously, increases the financial freedom you deserve.

What do you know about home liens?
A home lien is a legal recorded claim against your real estate property. The claim ties up your property as a way to collect money that you owe the county, meaning the unpaid property taxes.

Why is home lien a cause for worry?
Be forewarned if you let a lien on your home linger, it could mean facing foreclosure. That is, with an unpaid debt.

If your house was meant for selling, it could cause tremendous delay in the process. A lien serves as a warning since it could stop you from selling your home. Therefore, before the situation gets out of hand and into the courts, if ever, you have to pay your back taxes.

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About the Author

World- renowned real estate guru, Ted Thomas has created a complete amazing system that teaches anyone with money how to buy tax lien certificates online. Register online and get free access to valuable resources on the subject.