Once I buy a Tax Lien Certificate, do I have to buy the tax lien certificate on that property every year after that until I can foreclose on the property or is it a one time purchase?
You only need to purchase the tax lien certificate for one year. After 3 years, you can then foreclose on the tax lien. When you foreclose on the tax lien, you will need to pay any additional back taxes that are due. As an example, if you buy the tax lien for 2003 in 2005 and by 2008 the owner does not pay his back property taxes, you can foreclose on the tax lien and pay any additional back taxes that may be due. If the owner did not pay his property taxes in 2005, then it’s likely that he did not pay them in 2004, 2005, 2006, 2007 and 2008, so you may need to pay those too. You can pay for those (plus the additional 16% late payment) at the time of foreclosure. You can learn how this works in greater deal in the Intermediate and Advanced Education sections of our website.
Related Questions
- Once I buy a Tax Lien Certificate, do I have to buy the tax lien certificate on that property every year after that until I can foreclose on the property or is it a one time purchase?
- If I buy a tax lien certificate dated the year 2003, do I still have to wait 3 years to foreclose on it, or can I do it right away if the redemption period is 2006?
- How Do You Buy A Tax Lien Certificate?
