What Is A Tax Lien Sale ?
For many years the United State government has charged taxes against real estate property. The income generated through real estate property tax helps the government to carry out expenses on public services such as hospitals, schools, law enforcements, maintenance and construction of roads, public amenities like park, library, playgrounds etc. In the event of failure of payment of tax, the government incurs a loss and does not get the required capital to function.
With the intention of making this lost income from offenders district government recommends tax sales at public auction. In a tax lien sale, instead of buying a piece of land, the transaction over the real estate property is done against its debts. Which means the buyer agrees to pay the tax debts against the said property. Such a type of sale is held at district level once in a year. The buyer instead of getting the tax deed sale avails the original lien place on the title, in advance of mortgages, deeds of trust and judgments, secondary only to state tax liens.
The conditions of public auction differ in each district. For instance, if the balance due is not refunded with accrued interest within the notified time duration, the buyer of the lien tax has the full authority to declare the property as foreclosed. Once that is done, all other subordinate lien buyer are suspended, absolved and are not the liability of the chief buyer. Before stepping into such a type of sale, which seems to be alluring in the beginning, you must find out the details from the district office.
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