A tax lien is a claim secured with real property. If the property owner redeems the lien, the investor gets back their money plus interest. If not, the investor may acquire the property.
The winning bidder is the bidder who will accept the lowest rate of interest that the property owner will be required to pay in order to redeem the property.
The interest rate starts at 16% per year, but can be bid down during the tax lien auction.
The tax debtor has three years to pay the delinquent property tax, interest, costs, and fees to redeem the property.