The ABC’s of Tax Liens

May 3rd, 2018

Lots of people have heard of tax liens but not everybody knows exactly what they’re all about.  When somebody stops paying taxes on the property they own, the authorities put a lien on that space. It’s a legal claim for the amount owed.

What’s important here is that particular property can’t be refinanced or sold until the debt is paid up.

Los Angeles Tax Liens California

The National Tax Lien Association (NTLA) has compiled some interesting statistics about people interested in purchasing properties that have a lien on them.  CNBC has recently reported that each and every year in the United States approximately $14 billion in property taxes are neglected.

It’s interesting to note that approximately one third of these properties are sold in private sales. One of the big bonuses here is the fact that local governments benefit because they get the money that was owed to them through property taxes.

Here’s a few things to consider if you’re thinking about getting involved in one of these tax liens sales.

  • One of the first things to consider is what kind of property you’re looking for. There’s quite often a variety of commercial or residential spaces for sale that have liens on them. When it comes to land you can be looking for developed or undeveloped options.
  • The next step is finding out when and where the auction of the property will be held. Quite often the treasurer’s office in your local municipality will have a list of all the properties that are being auctioned off through tax liens
  • These lists will give you all the details that you need including the cost and how to go about registering.


More info on Tax Liens

Understanding  the procedures involved will help you to have a pleasant experience. It’s important to keep in mind that if you’re an investor who is looking to purchase one of these properties, you’re generally required to pay to the appropriate municipality.

It’s also important to keep in mind that you need to pay back the full amount plus interest and these rates can range up to 36% depending on the state that you’re buying in.

Keep in mind that we are here to help with anything you need when it comes to these types of purchases. Our qualified staff is always on hand to answer any of your questions. With our expert help, you can make the purchase of tax liens a profitable venture.