Glossary

Tax Lien Portfolio

What is a Tax Lien Portfolio and How Does it Work?

A tax lien portfolio is a collection of tax liens held by an investor. A tax lien occurs when a property owner fails to pay their property taxes. Instead of the government directly foreclosing, they sell the lien to investors, who can then earn interest on the delinquent taxes. A portfolio is simply a number of these liens combined into one investment.

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