Tax foreclosure businesses purchase properties for an amount more than the taxes owed on it. When homeowners stop paying property taxes, the taxing organization has the legal right to place a ‘property tax lien’. The total amount includes the taxes that are past due as well as accumulating interest and penalties. If the taxes are still unpaid, the authority’s tax lien gives the legal right to foreclose the property. Subsequently, the property can be sold at an auction for only a fraction of its original market price and re-sold at higher prices by these businesses.
Read the original: Examing the Tax Foreclosure Business and Repossession Help
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