The history of tax liens dates back to around 300 BC during the expansion of the Roman Empire. In order to stabilize revenues, private citizens were able to purchase the right to collect taxes on a particular region, guaranteeing a regular payment stream in return, and pocketing the difference.
Despite widespread abuses (tax collectors would forcibly confiscate property from farmers unable to pay taxes because of bad harvests), the practice of private tax collection spread throughout the known world. The system survived the Dark Ages and the Renaissance even finding a home in feudal England. From there it crossed over the Atlantic into colonial America and was common practice in the early 1800s.
However, it was during the Great Depression that the current system property tax lien certificate investing became widespread. State and local tax authorities turned to property tax lien certificates as a reliable and predictable source of revenue to fill holes in their budgets.
Fast forward to 2011 and despite the ways in which computers and the Internet have changed every other financial market and exchange, even creating completely new financial instruments, the vast majority of tax lien certificate investing is still done the old-fashioned way.
Lien Software's mission is to modernize and automate tax lien certification investing first through the LienLog software platform and then by creating an efficient secondary market, offering financing and liquidity options modern investors expect in their investment options.
POINTS TO ADD
Over 65% of municipal budgets are covered by local property taxes
TLC investing is a way to help local government
Any one in the US can buy tax liens