After a certain period of time, if the back taxes are not paid, the property can be seized and sold to pay the debt. A lien is placed on a property when the homeowner fails to pay annual property taxes to the state or local government. When a property owner fall behind with his property taxes, the tax collector acquires an automatic lien against his home. When this happens, the owner of the tax lien has the right to foreclose on the property and take ownership of the home. The government agency involved will issue a public certificate stating the amount of unpaid taxes and verifying that a lien has been placed on the property. The types of tax liens vary. Tax liens: Tax liens are filed due to unpaid taxes, including local property tax liens and those filed by the IRS for missed federal tax payments. When these taxes go unpaid, a lien is placed on the property. Tax debts are different than other types of personal debt, in that they are attached to the real estate, no matter who owns the real estate. A tax lien is a claim against property in order to secure the payment of taxes. They do this by first placing a tax lien on the property and then foreclosing. The collector doesn't want a lien, however. Also, in the event of a foreclosure, your tax lien results in you successfully acquiring the property. There are a number of options to satisfy the tax lien. The most obvious example of this is a tax lien. Normally, if you have equity in your property, the tax lien is paid (in part or in whole depending on the equity) out of the sales proceeds at the time of closing. Other forms of tax debt can also lead to a tax lien on the property. You can potentially hit the jackpot with a minimal investment in a tax lien, resulting in you becoming the property owner. There‘s also the "super lien," which involves being behind on homeowner association fees.   Thus, tax lien investing can be one way to acquire properties for less than they would normally be worth on the open market. If there is a federal tax lien on your home, you must satisfy the lien before you can sell or refinance your home. But sometimes, the property owner does not ultimately pay the tax lien. For example, if you don’t pay your property taxes for a set number of years, the county will foreclose on your property. Local, state, and federal governments may all obtain tax liens as a result of a property owner’s unpaid taxes. Buying these properties in "tax deed sales" can be … A tax lien is often filed by a local government against a property owner who has failed to pay property taxes. Involuntary liens are placed on the property by others for unpaid obligations. 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