Buying a tax lien property is not as easy as buying candies. You cannot just purchase it from anywhere so you really need to do your research on where tax lien properties are offered for sale. Tax deeds are quite profitable too because it can also give you control over a property.

However, before you can accomplish any of that, you need to get first a tax lien certificate. You can get tax lien certificates through bidding at auctions. The rules and the mechanics of bidding vary from one place to another – it may be easier or more difficult depending on where you are. Nevertheless, most tax lien certificate auctions maintain that you bid the lowest interest in order for you to win it. The reason behind it is that if you bid a lower interest than other bidders, it would entice the one selling it into getting through a deal with you because it is more profitable for their part.

However, certain characteristics of it remain to be the same – some bidding process requires you to bid lower or offer lesser interest than your competitor. By offering lesser interest, your chances of ownership will be increased because sellers would often look for the better, cheaper deals.

The different types of liens are indicated below:

Below are the different types of liens:

Tip: Make sure you get that in writing! Another little known fact is that after 10 years, unless the IRS renews the lien, the lien drops off their list.

Real Estate Liens. Real Estate Liens are a little harder to acquire than IRS Liens hence they are below the IRS Liens in the level of priority. The acquisition of Real Estate Liens involves bidding through an auction. Moreover, there are certain specifics about this type of lien.

If enough money is paid for the property to pay off only the first mortgage, then everything beneath that on the priority list is wiped away

If you are purchasing a second mortgage, you are also purchasing other succeeding priorities on the list. Hence, you really need to study Real Estate Liens to know what you really wanted.

Other Liens – This type of liens ranges from the following: Second Mortgage

Homeowner’s Association Fees

Mechanic’s Lien

Lawsuit

Judgment

Such items are included in the priority list the moment that they went on one of the records n County Recorder’s Office.