Bidding on a tax lien certificate is the first step in acquiring its benefits. Knowing how to bid correctly is important to the success of getting the property you’d like to own. Tax lien certificate auction is quite different from the usual sale of tax delinquent properties. It is because the certificate being on bid is the amount of tax debt to be paid by the homeowner and not the property itself.
With tax lien certificate investing, you win either way. You get a profit from the interest rate accumulated after the homeowner redeems his property, or acquire rights to ownership if he fails. Plus, it is secured by the government. You gain the assurance that all transactions made are safe. You really get your money’s worth.