I'm a Realtor so I can hopefully break it down a bit for you. A lien is simply an incumberance on the title for the deed to a property. For instance, you bought a 150,000 dollar house...the mortgage is a lien on the property. If you have taken a home equity loan, that loan becomes a lien on the property. If you do not pay the money back, then the company from which you borrowed is well within its rights to sell the property for what its worth to release your from the lien (you recieve back any money OVER the amount of the lien).
However most mortgage companies would rather not see that happen (they lose money and waste time by trying to sell your house) so theres actually a whole business dedicated to solving this problem. The pre-forclosure industry helps banks stay away from having banks sell houses, and help home owners from filing bankruptcy or recieving bad credit.
Enough with the lesson though. Tax Lien Properties are really a steal. Its best to find a Realtor or Agent in your area and ask them about whats going on in your city. Realtors have the best resources availible and can find houses on the market that you wouldn't even know were available. Also check government listings and see what they can do for you. The government reposesses alot of property, and sells them at cheap costs just so they don't have to continue to pay taxes on them. You can find extremely good prices at auctions but its really the only option that most people think is available so its like running the gauntlet at those things. Not to mention you'll be competing with Brokerages who want to buy the houses and sell them at market price. Just a heads up for you though.
~Ocelot~
However most mortgage companies would rather not see that happen (they lose money and waste time by trying to sell your house) so theres actually a whole business dedicated to solving this problem. The pre-forclosure industry helps banks stay away from having banks sell houses, and help home owners from filing bankruptcy or recieving bad credit.
Enough with the lesson though. Tax Lien Properties are really a steal. Its best to find a Realtor or Agent in your area and ask them about whats going on in your city. Realtors have the best resources availible and can find houses on the market that you wouldn't even know were available. Also check government listings and see what they can do for you. The government reposesses alot of property, and sells them at cheap costs just so they don't have to continue to pay taxes on them. You can find extremely good prices at auctions but its really the only option that most people think is available so its like running the gauntlet at those things. Not to mention you'll be competing with Brokerages who want to buy the houses and sell them at market price. Just a heads up for you though.
~Ocelot~