Investing your hard earned money in tax lien is one of the best methods to build a constant flow of good income in your real estate plans. It would take a lot of research though to learn the ropes however, your efforts are rewarded well enough. You can easily earn up to twenty percent on your investment with almost little to zero risk whatsoever.
Basically, counties in the United States raise money by taxing the property of a homeowner. If the homeowner fails to pay his taxes, the tax amount becomes a lien against the property. The great thing about this is that the lien supersedes any other judgments against the property. This also includes the mortgage. This simply means that if the homeowner does not pay property tax, then you as the holder of the lien acquire the title to the property. Ahead of the bank that holds its mortgage. With this, the bank itself would pay the lien off just to protect their investment, even with any interest.
In the first place, why do the counties sell these liens? It is because they need the money from taxes, in order to pay for schools, police, hospitals, and other public services. Each and every county is authorized to collect the taxes due by statute, which remains unpaid by selling at public auctions. It is either a tax lien or tax deed. So, invest in tax liens because the income is real and can provide a lasting flow of cash in your pocket.