Tax Liens: A Guide to Investing

Tax liens are legal claims placed on a property when the owner fails to pay their property taxes. Investors can purchase these liens at auction, effectively paying the overdue taxes for the owner. In return, the investor earns interest on the lien and gains the right to foreclose on the property if the owner doesn't settle the debt within a specified period. Investing in tax liens can generate steady interest income and potential property acquisition, but it requires understanding the auction process, local laws, and risks involved, such as the chance of not getting repaid or dealing with complex foreclosure procedures.