A lien is a form of security interest granted over an item of property to secure the payment of a debt or other obligation. The government instead of chasing a non-payer down and asking or begging him to pay his taxes will file a claim (lien) against the property.

The government files only as a last resort. Once the lien is filed and all other options are exasperated the government will then do basically one of two things, either the property may be seized and sold (a deed sale), or in some states the lien may be offered to investors (in the form of a tax certificate) with an accompanying right for the investor, after a specified period of time, to institute foreclosure proceedings (an out right sale of property).

First method is a deed sale; here the government will offer property for sale to public usually for the price of back tax amount due plus any fees, interest charges, and court costs.

The winning bidder purchases the deed to the property, becoming the new owner and obtaining all rights to the property - clear of any mortgages, deeds of trust, etc.

Second method is a lien certificate; here the government will allow an investor to pay the taxes on behalf of the owner. The investor will receive a certificate proving the investor paid the taxes owed. From here the investor does nothing but wait until the property owner finally decides to pay the late bill. Most all owners end up paying their late bill because if they do not the government can and will auction off the property right out from under the property owner to get money owed; this is a big incentive to pay property taxes and over 98% of owners do.

Once the late bill is settled the government will contact you asking for the certificate; when you provide the receipt the government will pay back the amount you originally paid plus interest - maybe over 20% Interest!

That is the answer in a nutshell to What Is A Tax Lien.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

California Law for Real Estate Investors - Including Forclosure Issues
Probate Issues One mistake that California real-estate investors make is signing a purchase contract too soon when a probate is required. Some real-estate investors try to buy properties when the deceased left real estate to family members or friends who cannot make the monthly loan payments. If ... more...

Simple Tips to Selling Your Home on Your Own - For Sale By Owner
Many property owners every year successfully sell their own real estate and pocket the commission for themselves. Commissions in a real estate transaction can be substantial and may provide a property owner with a sufficient amount of motivation to sell their property themselves without a real ... more...

National For Sale By Owner Companies - They May Not Save You As Much As You Think!
The For Sale By Owner home seller: FSBO (Fizz-Bow). One of the most sought after of all real estate clients. Why? Because their homes are for sale and real estate agents can mail these folks any number of solicitations without stepping on another agent's toes. These are the home sellers that have ... more...

For Sale By Owner In Canada
Since past few years Canada is enjoying a real appreciation in the market of real estate, for sale by owner homes and properties than in the United States. For Sale by Owner in Canada has turned out to be very lucrative business thus increasing the property rates. It is essential to get a real hold ... more...