TAX LIEN CERTIFICATE

A tax lien certificate is a form of real estate paper – an evidence of indebtedness. The tax lien certificate investor pays, on behalf of a real estate owner, any unpaid real property taxes (plus penalties, interest and costs of sale) due on a particular parcel of real estate. In return, the investor typically receives a document called a tax certificate. That certificate is secured by an assignment to the investor of the county’s real property tax lien against the property. The property owner must then repay the amount paid by the investor, plus an interest rate return on the property - or lose the property.