Tax Deeds and Tax Lien Certificates Defined

Tax Deeds and Tax Lien Certificates DefinedWhat are tax deeds and tax lien certificates?  They are basically issued by the federal government to delinquent homeowners who do not pay their tax debts.  The tax collector’s office of the local county issues a lien wherein homeowners must pay their tax debt within 1 to 3 year period.  Failure to do so would result to liens and deeds sold off to property investors.

Lien certificates and deeds are auctioned to interested buyers at a public auction.  This is where investors coming from various parts in the United States would compete and bid in order to get the properties they want.  The winners then pay off the tax dues of the homeowners.  The homeowners in return must pay their debt within the redemption period, or face the consequence of losing their properties.  If they do pay up, it must also include interest and other fees so that they can take back their home.

Tax liens and tax deeds both help investors and property owners.  Also, it helps the government in giving out the needed public services to its people.  In a way, it benefits all.


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