Tax Lien Certificates

Tax lien certificates are financial instruments issued by local governments when property owners fail to pay their property taxes. The government sells these certificates to investors, allowing them to pay off the delinquent taxes in exchange for the right to collect that amount, plus interest, from the property owner. If the owner does not repay, the investor may eventually obtain the property through a foreclosure process. This offers a potential investment opportunity with high returns, but it also carries risks, such as the possibility of not receiving repayment or encountering legal complications.