Tax sale investing is an investment option that institutions and individuals across the United States find valuable. Participation in the tax sale process, referring to either tax liens or tax deeds, often gives investors a good rate of return on the investment and possibly outright ownership of real estate with delinquent taxes. While tax sales are an attractive option for investors, they also jeopardize property owners’ and mortgage holders’ interest in real estate.

Each state establishes its own laws governing the tax sale and tax foreclosure process. Tax sale investors and mortgage holders must understand the nuances of tax sale laws the applicable jurisdiction to protect their interests. Investors and mortgage holders can get blindsided by unexpected quirks of a particular state’s tax sale process if they don’t understand tax lien essentials in each jurisdiction. This article is the first in a series of five that can help tax sale investors and mortgage holders protect their rights and interests in real estate.