State municipalities fund their budgetary needs through the collection of property taxes and utility charges.  When property owners are delinquent in the payment of these obligations, the municipality is empowered to auction “liens” to bidders to raise the necessary funds for their governmental operations.

In order to clear the tax lien/utility liability, the property owner must pay the delinquency and other statutorily authorized accumulated interest and penalties.   

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	Property taxes become delinquent.
	Municipality auctions delinquent taxes to raise money. The municipality uses the money to fund municipal services such as schools, etc.
	Investors purchase taxes, which results in a first priority lien on the property
	Property owner pays the taxes due to the Municipality, with statutory interest within the allowable redemption period. The municipality then forwards this payment to the investor

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