A lien sale is the sale of a claim or a hold placed on an asset to satisfy an unpaid debt. Typically, lien sales are conducted as public auctions, and the lien is on real estate, automobiles, and other personal property. Depending on a particular states laws, contractors, subcontractors, and suppliers may put a lien on a piece of property they have worked on pending payment for services rendered. Here are some key points to understand about lien sales:

• How it works: Lien sales are typically conducted as public auctions, and the lien is on real estate, automobiles, and other personal property. Buyers pay the total advertised price consisting of tax, interest to the date of public auction, and an advertising fee. If the lien is not redeemed within a specified time frame, the tax buyer may apply for a deed, and the deed to the property will be issued to the tax buyer if there is no redemption made before the deed date, which results in losing the property.

• Types of liens: Real estate liens are legal claims that can be placed on a property because the owner did not pay a debt. A tax lien is placed on the property because local, state, and/or federal taxes are unpaid, while other liens result from court judgments.

• Redemption: Owners of property that is subject to a lien sale can have their property removed from such sale by making payment arrangements to bring their outstanding debt up to date. If your taxes are sold at the tax lien sale, you will owe the tax lien face value, redemption interest, and a redemption fee. The property owner has a specified time frame to pay off the tax debt, along with fees and interest, to avoid losing the property.

• Interest rates: There are limits to the interest rate amounts that a lien buyer can impose.

In summary, a lien sale is a legal process that allows a creditor to sell an asset to satisfy an unpaid debt. Lien sales are typically conducted as public auctions, and the lien is on real estate, automobiles, and other personal property. The property owner has a specified time frame to pay off the tax debt, along with fees and interest, to avoid losing the property.