Tax Liens are Lien certificates (similar to an “I Owe You”) sold by the government when property owners fail to pay property taxes. If the owner pays the taxes before the redemption period ends, the holder of the tax lien gets their money back plus interest from the government. If the owner fails to pay the taxes, the lien holder could become the new property owner. Tax liens can be purchased for as low as under $100.*
Tax Deeds- Tax Deeds are not liens, but they are deeds of ownership sold by the government when property owners fail to pay taxes. In this case, instead of an “I owe you,” the government sells the actual property. Vacant Land can be purchased for as low as $1,000 and can go up to hundreds of thousands.