Buying tax liens is a very well hidden real estate investing secret. A tax lien auction is a court-ordered auction. Buying a tax lien home allows you to have either the higher yield from repayment of tax or the actual title to property at a substantial discount. In many areas of the state, municipalities have been steadily increasing the zoning requirements for all types of properties. Depending on the state where you buy the tax lien you can more often than not earn 18% to 50% or more per year. Depending upon the state and county that you are accessing there may be several types of auction bidding. If the delinquent taxpayer does not fall through the repayment, you still have the court backing the foreclosure of the property. Since taxes even in the worst areas are not likely to be more than 5% of this value each year, and owners lose their properties (perhaps to you) after two or three years depending on the state, you should never have to invest more than 15% of the value of the property, or 30% if the assessor is half insane in his assessments. Therefore, buying a tax lien allows you to have either the higher yield from repayment of tax or the actual title to property at a substantial discount. Many Americans are still not aware of the profit potential of such investment. You can also buy a Tax Lien over the web and in mail. You are not required to attend the auction to make a purchase. However, it is recommended that you buy them in person over the counter to eliminate error. However, before you jump onto this band wagon, it is advised that you do all the required homework.