You may be hesitant at first, thinking to yourself if a deal sounds too good to be true, then it probably is. However, the principle behind investing in tax liens and deeds is based on the fact that counties charge its citizens with taxes to pay for their public services and goods. It does not get more solid than that.
When citizens fail to pay the required taxes, the government takes their property and sells it to interested investors. If the homeowner does not pay the lien within the allotted amount of time called redemption period, then the owner forfeits the property to the investor.
Moreover, the amazing part about this investment is that the lien supersedes any other judgments against the property. The property’s deed would go to the holder of the lien before anyone else does. This includes the bank that holds the mortgage. This also means that lots of times the bank itself would purchase the lien from you, together with the interest, just to protect their precious investment in the mortgage.