Tax liens… if I bought a lien on a property

Flipper/Rehabber · Boston, MA · Member since 2018 · 47 posts · 7 votes

Tax liens… if I bought a lien on a property would I own that property? My friend is getting screwed by his family. His grandfather died and it’s now in probate. I am trying to help him but liens are unknown territory for me. How do I buy a lien on a property? Can someone guide me through this process. TIA

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Eliott Elias

Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes

Ask your title company about this. Liens are paid off at closing and should not be inherited.

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Nathan A.
New to Real Estate · Sunnyvale CA and Maplewood, NJ · Member since 2022 · 257 posts · 161 votes
3y
Quote from @Robyn Gersh:

if I bought a lien on a property would I own that property?
No. Here are some introductions to tax liens. My understanding is: When you buy a tax lien, you pay the delinquent taxes on a property you don't own in return for the right to collect interest on that amount from the property owner. Most of the time, the property owner eventually repays the delinquent taxes with interest and keeps the property, but if you haven't been repaid after a certain period you can eventually foreclose and acquire the property. In the area I'm familiar with, tax liens are only sold by the government once a year at auction.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Robyn Gersh
Tax
Lien doesn’t give you the property, it’s a lien on the property lien a mortgage then you can foreclose. If you foreclose it goes to auction and then highest bidder gets it.
But then if it’s I. Probate the funds would have to go through probate so probably doesn’t solve that problem
Curious how is friend getting screwed? If there is no trust the estate goes through probate process.
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John Slater
Real Estate Coach · Riverside County, CA · Member since 2017 · 238 posts · 157 votes
3y
@Robyn Gersh
Hi Robin. I agree with others, answer is no, but there’s more to it. I understand probate, tax and foreclosures, happy to answer any direct question, feel free to DM.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Ask your title company about this. Liens are paid off at closing and should not be inherited.
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Robyn Gersh
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Flipper/Rehabber · Boston, MA · Member since 2018 · 47 posts · 7 votes
3y
@Nathan A.
Thank you for the information!
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Robyn Gersh
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Flipper/Rehabber · Boston, MA · Member since 2018 · 47 posts · 7 votes
3y
@Chris Seveney
It’s to much to explain his situation…
Thank you for the information!
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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
Typically not, but could depend on where the property is and how you obtain the lien.
It's not a matter of who pays the taxes to determine ownership. Many people think this. So much so that some jurisdictions won't let 3rd parties pay off tax liens outside of their normal auction process.
Best thing for your friend likely is work out something with the family, sell the property perhaps and pay off those taxes out of the closing proceeds.
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