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

Understanding Redemption Periods

Of course no one wants to take away someone’s property, not the government and certainly not you. As I mentioned previously, owners are given every opportunity to pay their past due taxes and to avoid everything we’ve just talked about. They are permitted to make payment anytime prior to the tax lien being filed, after a tax certificate is sold, and sometimes even after a tax deed is sold. These are called redemption periods.

Once a certificate is sold, the owner can still redeem the property for a certain period of time by paying the back taxes, penalties, and interest to the treasurer or tax collector. These redemption periods can last up to several years in some states.

During a redemption period you cannot enter, access, or use the property.

It is important to note that during the redemption period, the owner still owns the property and has all the rights and benefits of ownership. He or she can still occupy it, rent it out, or even sell it. Of course if they do sell it, then the taxes are paid at the time of sale, and you receive your check. This is because your tax lien on the property becomes a matter of public record, and any title company that performs a closing or transfer of title on the property will have to make sure you are paid off in full before the transaction can close.

As a tax lien certificate holder, your rights are quite ...