What it means
In tax-lien states, the county sells the right to collect delinquent taxes instead of selling the home. The investor pays the taxes and earns interest from the owner. You keep the home and can redeem by paying the taxes plus interest and fees within the redemption period. If you don't, the investor may eventually apply for a tax deed and take ownership.
A certificate was sold on Ruth's $3,100 tax bill. She redeemed eight months later by paying the county about $3,400 including interest.
Why it matters to you
When a notice, a death in the family or a house you can't keep shows up, the words on the paperwork decide your deadlines and your choices. Understanding them early keeps more options — and more of your equity — on the table.
What to know and do
Interest rates on certificates are set by state law and can be high.
Redemption deadlines can be one to three years, depending on the state.
Selling the home pays off the certificate at closing.
Ask the county whether a certificate was sold.
Get the redemption amount and deadline.
Pay through the county.
Get a certificate of redemption.
- Redemption period
- Often 1–3 years
- Interest
- Set by state, can be high
- You still own the home
- Yes, during redemption
Rules, deadlines and forms vary by state, county and the exact wording of your loan, court or tax documents. For decisions with legal or tax consequences, talk with a licensed attorney, tax professional or HUD-approved housing counselor. This is general information, not legal advice.
General information, not legal advice. Rules vary by state.
- Redeem through the county, not directly with investors unless instructed.
- Keep proof of redemption.
- 1Ask the county whether a certificate was sold.
- 2Get the redemption amount and deadline.
- 3Pay through the county.
- 4Get a certificate of redemption.
Thinking the debt is gone because the county got paid.
Tell us the address and what's going on. We pull the property facts, show you your options side by side — including ones that don't involve selling to us — and never pressure you to sign.
See every situation we help withQuestions about Tax Lien Certificate
What is Tax Lien Certificate in real estate investing?
A certificate sold by some counties that lets an investor collect a homeowner's unpaid property taxes plus interest. In tax-lien states, the county sells the right to collect delinquent taxes instead of selling the home. The investor pays the taxes and earns interest from the owner. You keep the home and can redeem by paying the taxes plus interest and fees within the redemption period. If you don't, the investor may eventually apply for a tax deed and take ownership.
Why does Tax Lien Certificate matter to investors?
When a notice, a death in the family or a house you can't keep shows up, the words on the paperwork decide your deadlines and your choices. Understanding them early keeps more options — and more of your equity — on the table.
What's the most common mistake with Tax Lien Certificate?
Thinking the debt is gone because the county got paid.
Are there legal risks with Tax Lien Certificate?
Rules, deadlines and forms vary by state, county and the exact wording of your loan, court or tax documents. For decisions with legal or tax consequences, talk with a licensed attorney, tax professional or HUD-approved housing counselor. This is general information, not legal advice.
Did I lose my house?
No, not at the certificate stage.
How do I redeem?
Pay the county the redemption amount.
Can I sell?
Yes; it's paid at closing.
What if I don't redeem?
The holder may pursue a tax deed.
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