| Have you ever wondered what happens to a person's | | | | property. This can be a rare circumstance because |
| property when they don't pay their taxes? For | | | | people don't want to lose their homes, but if they do |
| decades now, the IRS has foreclosed homes and | | | | fail to pay, you'll still have the first lien position on title. |
| commercial property when someone hasn't been able | | | | Either way, you win in the end. |
| to pay their tax bill, but in the last couple of decades, | | | | Tax lien sales differ from tax deed sales, which are |
| county governments have held what is known as a | | | | auction sales as well. These are like tax lien sales, |
| tax sale. These are public auctions where people can | | | | except the winner of the auction will obtain all rights to |
| bid on tax sale liens. | | | | the property, and become the new owner if the tax |
| These are not pieces of land or a deed to a piece of | | | | debt of the homeowner isn't paid off. Once this |
| property that the public is bidding on, but a debt that | | | | happens, the new owner will be clear of any remaining |
| the homeowner will need to pay later on. In exchange | | | | liens, mortgages, etc. |
| for paying off the homeowner's debt, the homeowner | | | | These are just a couple of ways you can profit off of |
| will then pay the winner of the auction back, but with | | | | someone not paying their taxes. Tax lien sales and tax |
| interest. This is a good way to make money and help | | | | deed sales can be a life-saver, or a death-send for |
| someone from losing their home. | | | | some folk. Either way, homeowners have ample |
| The rate is determined at the time of sale, and if the | | | | opportunity to pay the remainder of their taxes, and if |
| homeowner fails to pay the debt with interest, the | | | | they choose not to, their homes will be foreclosed and |
| auction winner can choose to foreclose on the | | | | auctioned off. |