What Is A Tax Lien?The question, what is a tax lien, is prompted every year as property owners open their mail only to find a bone chilling delinquency notice. A tax lien is a first position lien placed on a real estate property for the failure to pay taxes when due. It is superior to other encumbrances such as a mortgage or a trust deed. 
Failure to pay real or personal property taxes, will result in a property lien. Interest as much as 18% or higher will accrue, plus penalties, until the delinquency is paid off. A federal lien may also be placed on a property for the failure to pay IRS income taxes, estate taxes, or gift taxes. These liens threaten the delinquent tax payer's ownership of the real estate against which the lien is secured. If the lien is not paid off, the government body that placed the lien, will foreclose on the lien to recover lost taxes plus penalties and interest. In the case of real property tax delinquencies, the county may sell a certificate or a tax deed at auction. Auctions are held in many states and counties. Any person may purchase these liens. Many individuals and institutional investors do. Start a legitimate home business investing in them. Buy a few books, take a seminar or workshop on the subject. Talk to a real estate attorney in the states you want to invest. Learn how you can profit investing in liens. You will learn how to earn interest rates above a CD's rate, secured by real estate. You might even be able to buy a property for the back taxes, interest, and penalties. Now that is a discount! Liens are serious trouble waiting to happen for the home owner. They are a business opportunity that can pay great returns for the entrepreneur. Time is passing oh so quickly. Act now!
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