Real Estate

15 Facts About Tax Lien Deeds Everyone Should Know

In real estate investing, tax lien deeds are a unique and often misunderstood investment. If you’re a real estate investor or financial advisor, you must be aware of tax lien deeds. This blog post will share 15 facts about tax lien deeds that everyone should know. By the end of this post, you’ll better understand how tax liens work and how they can impact your investment portfolio.

  1. What is a Tax Lien Deed?

A tax lien deed is a document filed by a government entity when an individual or business owes taxes. The lien allows the government to collect unpaid taxes from the property owner.

  1. How Long Does a Tax Lien Stay on a Property?

The time a tax lien stays on a property depends on the State in which the property is located. In some states, liens are removed after a certain number of years, while in others, they may remain indefinitely.

  1. Can a Tax Lien Be Removed from a Property?

Yes, a tax lien can be removed from a property if the taxes are paid in full. Additionally, some liens may be cleared if the taxpayer enters into an agreed-upon payment plan with the government entity.

  1. What Happens If a Tax Lien Is Not Paid?

If a tax lien is not paid, the government may foreclose on the property and sell it at auction to recoup the unpaid taxes.

  1. Are Tax Liens Public Records?

Tax liens are typically public records and can be found online through various government websites or at the county courthouse where the property is located.

  1. How to Buy a Property with Delinquent Taxes? or How to Find Tax-Delinquent Properties?

You can search for existing liens on a property by conducting an online search or visiting the county courthouse where the property is located. Sometimes, you may learn about liens by working with a real estate agent or financial advisor.

  1. How Much Do Tax Liens Typically Cost?

The amount of money owed on a tax lien will depend on the taxes owed and any interest or penalties accrued. In some cases, investors may buy and sell tax liens so that the price can vary depending on supply and demand.

  1. Do All States Have Tax Liens?

No, not all states have tax liens. Some states have other methods of collecting unpaid taxes, such as wage garnishment or bank levy.  

  1. How Does a Tax Lien Affect My Credit Score?

A tax lien will generally lower your credit score by 100 points. However, it is essential to note that a lien can be removed from your credit report after it has been paid in full.

  1. Will Paying Off a Tax Lien Improve My Credit Score?

Yes, paying off a tax lien will typically improve your credit score by around 30-50 points within 30 days after the payment is reported to the credit bureaus. 

  1. How Do Tax Deed Sales Work?

State laws vary on how tax deeds are obtained, but in every State that allows them, a government body must first get an ownership interest in your home. This may be done through the county where you live, or other legal document called a “tax deed.” The process for sale depends heavily upon which type of property it is and what procedure has been established by law within each State’s jurisdiction – including public auctions either individually between two bidders who compete against one another until someone bids higher than taxes owed plus any misconceiving fees associated with buying properties at auction (such as commissions), minimum bid requirements set just below this amount needed to secure full title insurance coverage before closing escrows close once

  1. What Are Some Other Ways to Improve My Credit Score?

You can improve your credit score by paying all your bills on time each month, keeping your debt balances low, and avoiding unnecessarily opening new lines of credit.

  1. What Is a Deed in Lieu of Foreclosure?

A deed in lieu of foreclosure is an agreement between a borrower and lender that allows the borrower to hand over ownership of their property to avoid foreclosure.

  1. What Is Judicial Foreclosure?

Judicial foreclosure is a more lengthy foreclosure process that takes place in a court system. In this type of foreclosure, the lender must file the necessary paperwork with the court to begin the process.

15 . What Are Some Alternatives to Foreclosure?

Some alternatives to foreclosure include short sale, deeds in lieu of foreclosure, and loan modification. By understanding how tax liens work, you can better evaluate their potential impact on your real estate investment portfolio.


Tax liens can impact your real estate investment portfolio in good and bad ways! By understanding how they work and being aware of their potential implications, you’ll be better equipped to make sound investment decisions as we advance. Ask those who might have had recent experiences with tax lien deeds within your jurisdiction. 

Hopefully, this post will lighten those dark spaces of confusion and misleading information about tax liens’ deeds. Also, provide a quick insight into the 15 facts about tax deeds liens everyone should know! If you have any questions feel free to use the comments section below. Tax Lien Code will be more than happy to get back to you with an answer ASAP!  

Christopher Stern

Christopher Stern is a Washington-based reporter. Chris spent many years covering tech policy as a business reporter for renowned publications. He has extensive experience covering Congress, the Federal Communications Commission, and the Federal Trade Commissions. He is a graduate of Middlebury College. Email:[email protected]

Related Articles

Back to top button