bidding at tax sale for the first time

[Bret Schilling]

Is my understanding correct that if you over bid the tax lien amount at a tax sale and the owner redeems, then you could potentially lose a lot of money? lets say the lien is 1000 and you spend 5k on it. If the owner redeems, he/she only has to pay back the 1k and any interest on the 1k. Is that correct or do they owe you the full 5k?

[John Underwood]

The county holds your money. The owner pays his back taxes plus interest. You get all hour money back plus interest.