Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

What To Do When Your Property Doesn’t Redeem

There is always a chance that you won’t get paid on your tax lien certificate if the property owner (or lender) does not redeem the property and pay the taxes prior to the expiration of the redemption period. The odds are against it, since over 95 percent of tax liens (excluding vacant land) are redeemed. But if you did your research correctly, then this should be a windfall for you if it happens.

If you do find yourself in this position, then you may have to foreclose on the property. The term foreclosure means that the title to the property is now being taken away from the owner, and the person who forecloses is now the new property owner because the owner failed to meet their obligations. Not a fun process, at least not until you come out the other side with a full, complete, free-and-clear title to the property.

Still, taking title to any property through foreclosure is never a fun process. It probably goes without saying that this is not something you should tackle yourself. You need to consult with a real estate attorney to make sure you follow state statutes to the letter regarding foreclosure and quiet title procedures.

Now you know why I’ve dedicated the entire next chapter to this topic. Taking control of a property is part art and part legal maneuvers. But it also comes with some unexpected rewards.