The U.S. government has two types of tax sales. First one is tax deed sales, and the second is tax lien auctions. Liens are filed against homeowners who failed to update their taxes. And for the most part, it has something to do with delinquent property taxes. Furthermore, the lien’s face value is the amount owed in back taxes as well as any costs associated with it.
Tax lien auctions are held every year by the government. The sale happens in almost all states however, the laws vary from county to county. Be sure you research the rules in the county where you’re purchasing the lien. Also, create a plan ahead of time and budget your bids to avoid costly mistakes.