Investing in Properties that owe back taxes.

[Michael Randle]

Occasionally I see people who invest in Tax Liens or you hear on the ratio 'Invest in government guaranteed tax foreclosures blah blah guaranteed 1,000,000% return on investment'.

But I am interested in what/how people invest in this area.

I know that if someone does not pay their local taxes the city can foreclose on them. But besides this step one I do not know how people make money with this whole process. I know there are primary and secondary liens etc etc.

If someone can point me into a non-bs (non-sell me something or some service) direction as to how an investor makes money when people stop paying there taxes that would be greatly appreciated.

Thank you!