County governments offer Tax Lien Certificates at Tax Lien Auctions to the public as means of generating lost income from delinquent taxpayers. During Tax Lien Auctions, Investors purchase the right to collect past due taxes. An investor is essentially loaning money to the county or municipal government in the amount of the delinquent taxes.

A Tax Lien Auction, or Tax Lien Certificate Sales, is a public sale. The County holds Tax Lien Auctions, generally once each year. The investor's money pays the delinquent taxes to the County on behalf of the delinquent property owner. The property owner is not off the hook, though.  The property owner is still responsible for the delinquent taxes plus interest or penalties.  In exchange, the investor is given first lien position on title, ahead of mortgages, deeds of trust, and judgments, subordinate only to State tax liens.

Tax lien auctions have specific rules and guidelines which must be followed promptly, and which can differ greatly county-to-county. It is strongly recommended that anyone interested in attending tax lien auctions be aware of the method and timeliness required for payment and delivery of a property. For further information, familiarize yourself with property tax law, and contact the government agency conducting the sale.

Under the terms of the sale, if the debt is not repaid with interest within a specified time period, the purchaser of the tax lien may foreclose upon the property. All subordinate liens are dissolved. If you are interested in participating in a Tax Lien Auction or Tax Certificate Sale, contact the county for specific information and details both about the sale and the properties.

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