A tax lien certificate is a form that describes a lien on your property for not paying taxes. These certificates are issued in certain states when the property owner fails to pay their taxes on time. Tax lien certificates are sold through auctions to investors who will then basically act as the taxing authority over the property.
As opposed to a tax deed sale wherein an investor buys the title to your property, an investor with a tax lien certificate is given the right to collect full payment of the taxes due plus interest from you, the property owner. If you don’t pay on time, the investor then can foreclose the lien and take the title to your property.