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When the owner of a piece of real property fails to pay the proper amount of taxes due, the governmental entity to which the taxes are owed places a claim, or tax lien, on the property to ensure payment.
The tax liens will allow the taxing authority to sell the property, usually in a public auction and often for the taxes owed or even less. This creates an opportunity for a person with the time to properly research this issue and the willingness to invest a little cash to obtain real estate at bargain basement prices.
Researching a tax lien is easy, once you determine the area in which you want to find a property being sold for a tax lien. All, or at least a significant portion, of the taxes on which the lien is based will likely be local taxes, so a visit with the taxing authorities in that area is the best place to start. Typically, tax liens are imposed by city or county governments, as well as school districts.
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