Tax Lien Auctions

Tax lien auctions are public sales where local governments sell the right to collect overdue property taxes from homeowners. When a property owner fails to pay taxes, the government can place a lien on the property and auction it to recover the owed amount. Investors participate in these auctions, bidding on the liens, which may earn them interest when the property owner pays the taxes owed. If the owner doesn’t pay, investors can potentially foreclose on the property. This process allows municipalities to collect needed revenue while offering investment opportunities for bidders.