Nead Realty Investments LLC

How does a tax lien work?

If a plumber performs a service for a customer and is denied a predetermined wage, he or she would go to the courthouse and file a lien on the customer’s home. The lien is like a leach sucking on the equity of the home. This lien will stay on the property
until the homeowner pays it off or until the home is sold. If the home is sold, the buyer is required to pay off any liens joined to the property. A tax lien is issued by a county for unpaid taxes. Tax liens resemble a plumber’s lien, as in the above example, except it has superiority over all other liens on the property. One county’s law states, “The [tax] lien shall be prior and superior to all other liens and encumbrances upon the property.” This law is consistent among all counties across the U.S. So, all other liens are inferior to the tax lien and they are wiped out. Even the mortgage is wiped out.

All the properties are sold at public auctions. They are not advertised because no one has any motivation to do so. Finding them can be fairly easy but vetting them to make sure there are no issues and Finding a max bid value takes a lot more knowledge.

I now own a lot in TN worth about $15,000, only paid $1,500 for it, awesome!!

I just won another auction, a $6000 property for less than $1500

What is a tax lien?
A lien is a monetary claim against property intended to insure payment.
A property tax lien is a monetary claim against a property intended to insure the payment of property taxes.