What Is Tax Lien Certificate Investing

How Does Tax Lien Investing Work

Investing in tax liens via purchases at a tax obligation lien sale is simply that-an investment. All Tax Obligation Sales in Colorado are performed per CRS 39-11-101 thru 39-12-113 Adhering to the tax obligation lien sale, successful prospective buyers will receive a copy of the tax obligation lien certificate of purchase for each residential property. Investing in tax obligation liens via purchase at the tax obligation lien sale is just that, an investment.

Investing In Tax Liens

When a property owner drops behind in paying building taxes, the county or district may place tax lien versus the home. Rather of waiting for repayment of taxes, governments sometimes determine to offer tax obligation lien certifications to personal financiers. Your revenue from a tax obligation lien investment will come from one of two sources: Either interest payments and late costs paid by property owners, or repossession on the building in some cases for as little as cents on the dollar.