- 1). Contact your local property tax office or courthouse. Ask the staff for information on where to find properties with delinquent tax liens. This information also might be available online or in the local newspaper.
- 2). Find out how much money is owed on the lien. In some cases, there might be multiple liens on the property. For your first property, stick with properties with one lien against it.
- 3). Visit the property. A picture is worth a thousand words, unless you're making a thousand-dollar purchase. You need to assess the property in person. Have an inspector look at the house, and ask the neighbors what they know about the property.
- 4). Look up the times for the auction. Like foreclosures, tax liens are sold at auction. You will be bidding for the tax lien certificate. This is essentially a loan to the homeowner. If the homeowner pays off the certificate in full, you do not get the property, but you are entitled to an interest rate which is set by the state on all tax lien sales.
- 5). Buy the property at the auction. Buying the property is known as buying the tax lien deed (not the certificate). Some states have a separate auction for tax liens and tax deeds. When placing a bid for a tax deed, individuals can bid on the property free and clear.
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