Tax Lien

A tax lien is a legal claim the government places on a property when the owner fails to pay their taxes. This lien ensures that the government can collect the owed amount before the property can be sold or refinanced. It essentially secures the government’s interest in the property. If the taxes remain unpaid, the government can eventually foreclose on the property, meaning they can sell it to recover the owed taxes. Tax liens can also affect the owner’s credit score and ability to obtain further loans.