Tax lien state

The county in which the property is located sells the lien certificate at a sale or auction. Some states sell the lien for the delinquent amount while others allow bidding to begin at that price. The purchaser of the tax lien collects interest (predetermined by the state) from the home owner on the amount that was paid for the tax lien. If the tax lien (with interest) goes unpaid during the redemption period, the investor may foreclose on the home.