Tax Lien Investing… I have questions.

[Paul O'Connor]

Ok… so I understand tax lien investing as a race to the bottom. Meaning… investors compete against each other, lowest interest rate wins. Right?

Owner has a set time period to pay the back taxes that you paid back in full or they lose the property. Right?

My real questions are… what about any first or second lien holders? Do the banks/lenders have the option to pay you back, with interest accrued or you get the property? How could you win a property has a loan against it for $200,000 (example)? You wouldn’t just be awarded a property when their are lien holders in place that have rights, right?

I appreciate your help and expertise.