Risk of Tax Liens

[Mr Nice Guy]

I just learned a little bit about tax liens recently, and I was wondering if anyone here had any experience with them.

More specifically, what risks are associated with tax liens? I read that if the DEA or FDIC has a claim to the property, your ownership could be jeopordized?

[Slug]

I don't know much, but I had heard you could purchase tax liens and have a claim to a property if there is a failure to pay.

[Mr Nice Guy]

From what i understand, the property is put under lien for a maximum of three years.

Every year the current lien holder has first right of refusal to buy the tax lien again. If you hold the tax lien for three years, and owner doesnt pay, property is yours. This is on top of ROI (usually 10%.)