What are Tax Liens
In the UK, like it or not, we have to pay local taxes (council tax). This is a municipal tax on property in a position to allow the County to provide community services such as police, ambulance, fire, schools, etc. Now, the equivalent of council tax in the U.S. is called property tax.
In Britain, if we fail to pay our local taxes, then the local authority initiated a lawsuit to get money from you. They will place a CCJ (County Court Judgement) against you, which darkens your creditworthiness, and they will take you to court and either the court will issue an arrest warrant for a bailiff to enter and seize property value judgments and legal costs, to enable the local authority to recover their money, or the judge may even send you to prison if they think you do not have much trouble.
All this is very long and costly for local authorities and they still can not get their money. That’s why our municipal taxes is rising – those of us who pay our local taxes are in effect subsidizing those who do not. How did you like?
The United States has, in my opinion, much more sensible way to get money to pay their property taxes. When an owner in the US does not his pay your property taxes on their home, the local authority (also known as County) imposes a legal charge against the property that is called a tax lien. This prevents the owner from the selling the property or even refinance the property until the taxes are paid. The local authority guarantees the debt. They sell these to investors as TAX CERTIFICATES.
Unpaid real estate taxes create a serious cash-flow problem for local governments and municipalities. If local governments are unable to collect real estate property taxes, they are also unable to fund important government services like police protection, public schooling, and medical services. To solve this problem, local governments sell the delinquent tax debt to investors. In exchange, investors receive a tax lien certificate which is the government’s lien for property taxes.
UK’s Number 1 Tax Lien & Tax Deed Expert Explains what Tax Liens are and how to Invest In Safe Secured Tax Lien Certificates with Returns of 8% to 50% PA.