Tax lien foreclosure

Tax lien foreclosure occurs when a property owner fails to pay their property taxes, and the government places a lien on the property as a legal claim for the owed amount. If taxes remain unpaid, the government can eventually auction off the property to recover the unpaid taxes. Buyers at these auctions purchase the tax lien, gaining the right to collect the debt plus interest. If the owner doesn’t pay within a specified period, the lienholder may seek to foreclose on the property, potentially resulting in full ownership transfer. This process ensures local governments recover unpaid tax revenue.