The Implications of Tax Liens

The government restricts certain delinquent properties such as tax liens. They impose the tax liens on lands and properties whose owners did not pay taxes religiously from mortgage or loan payments. However, the property owner can still catch up with the missed payments within the redemption period. When the owner has done this, the lien would then be lifted from the property.

Usually, the government is generous when they give notice to the property owners that are under mortgage or loan. Before any tax liens are imposed on the properties, the owners are informed months ahead of the delinquent payments. Also, there are other chances for the lien holders to make up with their dues.

Once the tax liens are placed on a property, it would be more difficult for the owner to catch up on the missed payments. The reason is that the government expects the owner to pay for the back taxes plus any other interest incurred during the non-payment period. The accrued amount may be the overall sum that the agency would expect the owner to pay in full, so that the restrictions on the property would be lifted. Still if there is no progress on the owner, the government would auction off the tax liens to investors who are willing to bid. The county would then announce an auction for the tax lien certificates to interested parties. The winning bidder gets to have the certificate.

There are rules and regulations governing the tax lien sales and bidding transactions. It is a must for buyers on these types of properties to know that if the current owner pays up, then they should give back the rights to the property. But if not, the winner of the bid can collect the property deed after a period of time if there was no intention on the side of the current owner to pay up his dues.

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