: You are buying a certificate of debt . You earn interest (often 8%–24%), and you only get the property if the owner fails to pay you back and you complete a separate foreclosure process. 3. Essential Due Diligence
When property taxes remain unpaid for a "redemption period" (typically 1–3 years), the local government forecloses and auctions the property to recoup the debt.
: Usually covers back taxes, interest, penalties, and administrative costs.
: Winning bidders must often pay the full amount in cash or cashier's check within 24 to 72 hours . 2. Tax Deeds vs. Tax Liens
It is critical to distinguish between these two "tax" investments: