Local governments use two primary systems to recoup unpaid property taxes:
: If the owner pays you back, you earn a return. If they fail to pay within a "redemption period" (months to years), you can initiate foreclosure to take the house.
: Acquire the property outright, often at a significant discount below market value.
: Earn interest (often 8% to 18%+) on the debt you paid.
: You pay the owner's unpaid taxes to the county and receive a "lien" against the property. This does not grant immediate ownership.
: You become the owner immediately after the auction, though you may still face a "redemption period" where the original owner can buy it back. Step-by-Step Buying Process How to Buy Property with Delinquent Taxes? - FastExpert
: The county seizes the property and auctions it to the highest bidder.