It basically just starts the clock and the owner has to pay back their tax bill + interest or they run the risk of losing their property.
In the case that they don’t, the lien or deed holder (in states such as Texas) has the right to begin the foreclosure process. Many tax bills ultimately do get paid and rarely get to the foreclosure stage so at the minimum you can expect your face value + interest.
In the short term, the local gov is getting paid and your money is then tied to 2 possible outcomes. As you can probably tell this is all very paper heavy and expensive. Also did I mention it’s on a county level and there’s more than 3K counties in the US…
@Aqueous_WC@lienfiapp They do get picked up by tradfi… that’s what they’re solving. Liens are typically auctioned yearly at a county level and it’s a very antiquated process. You’re not buying the property that has a lien but rather it’s tax obligation.
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