Tax Lien Funds

Tax lien funds are investment vehicles that pool money to buy tax liens—legal claims placed on property when property owners fail to pay their property taxes. By purchasing these liens, investors gain the right to collect overdue taxes, interest, and penalties. If the property owner pays, the investor earns returns; if not, they may have the opportunity to acquire the property through a foreclosure process. These funds provide a way for investors to access income-generating opportunities tied to real estate, often with predetermined interest rates, while offering local governments a way to ensure tax collection.