Glossary

Lien subordination involves changing the order in which creditors are paid back if a debtor defaults. It is typically achieved through a subordination agreement, which alters the priority of liens against a property.

A Notice of Federal Tax Lien (NFTL) is a public notice that the IRS has a legal claim against your property because you owe them taxes. It signals a serious tax debt issue.

A certificate of redemption is a document that proves you've paid off a tax lien on your property, restoring full ownership rights. It's a key piece of paper when you've had a tax issue with your home.

A tax auction is a public sale where properties with unpaid taxes are sold to recover the debt. Understanding these auctions is crucial for both potential buyers and property owners facing tax delinquency.

A tax deed is a legal document that transfers ownership of a property due to unpaid property taxes. It’s often the result of a tax sale.

Tax lien investment is when you purchase the right to collect on unpaid property taxes. It can be a way to potentially earn a return, but it's crucial to understand the risks involved.

A senior lien is a debt claim that has priority over other liens on the same property. It's important to understand this concept when dealing with secured debts.

A junior lien is a debt claim against a property that has a lower priority than other existing liens, meaning it gets paid after those senior debts. It's important for homeowners to understand because it affects their ability to sell or refinance.

A lien holder is someone who has a legal claim against your property because you owe them money. This claim can arise from various debts, including unpaid taxes, and it impacts your ability to sell or transfer that property.

Delinquent taxes are unpaid taxes that have passed their due date. Understanding how taxes become delinquent and what to do about it is essential for financial health.