Unlocking Wealth: Everything You Need to Know About Tax Liens
A tax lien is a powerful encumbrance placed against a property for unpaid property taxes. Before any sale transaction of a property can be finalized, the existing tax lien must be fully settled by the seller. This lien stays with the property throughout its existence, affecting even future acquisitions.
If a property owner fails to pay back property taxes, it could ultimately lead to mortgage foreclosure. The timeline for satisfying a tax lien is determined by the taxing agency. Should the tax lien remain unresolved, the taxing authority can sell the home at an auction to an investor willing to settle the outstanding tax amount along with any interest and penalties.
The greatest allure for investors lies in the fact that they can potentially acquire the property at a fraction of its true market value. The home is sold free of its mortgage burden, which means the investor garners substantial savings.
Exploring tax liens opens doors to unique real estate investment opportunities for those knowledgeable about navigating this niche but lucrative market.
Related Terms: tax deed, property taxes, foreclosure, real estate investment trust (REIT), tax sale.
