When a property owner fall behind with his property taxes, the tax collector acquires an automatic lien against his home. You can potentially hit the jackpot with a minimal investment in a tax lien, resulting in you becoming the property owner. For example, if you don’t pay your property taxes for a set number of years, the county will foreclose on your property. Local, state, and federal governments may all obtain tax liens as a result of a property owner’s unpaid taxes. The government agency involved will issue a public certificate stating the amount of unpaid taxes and verifying that a lien has been placed on the property. “Federal tax liens need to be satisfied via payment; however, there are circumstances in which the IRS will grant a partial release for the particular property, or there may be an opportunity to obtain a certificate of discharge which will release the property but not the lien itself,” advises Stitgen. Tax debts are different than other types of personal debt, in that they are attached to the real estate, no matter who owns the real estate. Counties across the United States charge real estate taxes. They do this by first placing a tax lien on the property and then foreclosing. Buying these properties in "tax deed sales" can be … The lien is the amount owed and must be paid in order for the sale or refinancing of the property to go through. There‘s also the "super lien," which involves being behind on homeowner association fees. A tax lien is often filed by a local government against a property owner who has failed to pay property taxes. Tax liens offer many opportunities for you to earn above average returns on your investment dollars.   Thus, tax lien investing can be one way to acquire properties for less than they would normally be worth on the open market. Involuntary liens are placed on the property by others for unpaid obligations. There are a number of options to satisfy the tax lien. The most obvious example of this is a tax lien. But sometimes, the property owner does not ultimately pay the tax lien. When these taxes go unpaid, a lien is placed on the property. Other forms of tax debt can also lead to a tax lien on the property. When this happens, the owner of the tax lien has the right to foreclose on the property and take ownership of the home. The types of tax liens vary. If there is a federal tax lien on your home, you must satisfy the lien before you can sell or refinance your home. After a certain period of time, if the back taxes are not paid, the property can be seized and sold to pay the debt. The collector doesn't want a lien, however. Also, in the event of a foreclosure, your tax lien results in you successfully acquiring the property. You could have a federal tax lien on your house, but you could also have a state tax lien or a tax lien from your county or city. 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