How To Buy House Tax Lien

Buying these properties in tax deed sales can be a great investment.

How to buy house tax lien. 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. Every year more than 7 5 million taxpayers fail to pay their property taxes on time accounting for over 15 billion in lost revenue. A tax lien represents an unpaid tax debt on a property. It is through this auction process that you have the opportunity to purchase a tax lien. Often a property tax lien will take precedent as the first lien over the mortgage.

In 2017 approximately 14 billion in property taxes were not paid according to brad westover executive director of the national tax lien association ntla. Counties across the united states charge real estate taxes. After a certain period of time if the back taxes are not paid the property can be seized and sold to pay the debt. Such a certificate rather than the actual home is sold at the tax lien sale to the highest bidder. Tax liens by the numbers.

There are plenty of opportunities to buy property tax liens.