Government Property Foreclosures and Tax Liens

Sale of tax liens are conducted by a local taxing authority of the government for delinquent taxes on real estate properties. It’s one of the methods for collecting taxes and the other one is tax deeds. These are measures by the county or state tax foreclosures.

The county organizes tax sales in the form of public auctions in order to compensate for lost income from delinquent property taxpayers. When you buy a lien or deed at a tax sale, you’re actually paying up the taxes for the delinquent homeowner.

At a tax sale, a real estate can be purchased for a low percentage of its actual market value. The other option is that you can collect a high interest rate of eighteen to twenty four percent when the tax lien is paid off. With this to keep in mind, tax sales is a highly profitable investment that an investor can count on.

By purchasing a tax lien, you would get the principal paid for it plus interest accumulated as well as the benefit of foreclosing the property if the homeowner would not pay you during the redemption period. As a result you would get the title of the property and take full ownership of it.

These are just some of the ways that the government tax foreclosures are disposed off from delinquent owners. This is the sad fate of property owners who do not pay their dues but provides an opportunity for other people to make money out of tax lien sales.