What is a tax lien? It is an encumbrance on a property to secure a tax debt by the owner, who owes it to a lender or the government. The lien holder can be an individual, bank, credit union, finance company, or other financial institution, which the property owner has signed an agreement to lend money using a particular asset.
A lien holder can lay claim to the tax delinquent property if the loan is not repaid within a time frame. The tax lien certificate of the property would then be sold at a public auction. This way the lien holder can get the money back.