From property tax delinquency to investor outcome: the lifecycle of a tax lien, with institutional-grade data sources.
Click any card to reveal sources
$5.02B
Annual Market Size
2024
95%+
Redemption Rate
NTLA / Colonnade
~20 bps
Institutional Loss Rate
Colonnade 2024
80%
Institutional Share
NTLA
Owner misses property tax payment. County records delinquency and statutory interest begins accruing.
Day 1 of Delinquency
County sends certified notice. Property advertised per state law. Lincoln Institute research shows notice frequency affects compliance.
30-120 Days Before Sale
County releases auction list with parcel ID, owner, address, amount due. ArrearIQ normalizes across jurisdictions.
7-30 Days Before Auction
Bid-down interest (liens) or bid-up price (deeds). Fortress used 17 aliases in FL to bid rates to 0.25%.
Annual/Quarterly Events
Click to expand source details
Hedge Fund / REIT
$301M
FL Securitization
1M+
Liens Since 2006
Specialty Servicer
$622M
3 Securitizations
300K+
Liens
Texas Market Leader
$600M+
TX Loans
~50%
TX Market Share
95-99%
Redemptions
Owner repays lien with statutory interest. Investor receives predictable return without property exposure.
2-5%
Foreclosures
Investor may acquire property. Tyler v. Hennepin (2023) requires surplus equity return to former owner.
How tax lien auctions work. Where ArrearIQ fits in.
Owner misses property tax payment. County begins delinquency tracking.
Pre-public data stage. No investor action yet.
County issues notice to owner. Public advertising period begins.
ArrearIQ monitors county portals. Detects new notices.
County publishes official auction list (often as PDF or portal listing).
Parses PDFs. Normalizes data. Enriches with location intelligence. Scores every property.
Competitive bidding. Liens/deeds sold to highest bidder (or lowest interest rate).
Calendar tracking. Deadline alerts. Registration reminders.
Owner has statutory period to pay back taxes + interest. Varies by jurisdiction.
Portfolio tracking. Redemption status monitoring.
Either redemption (investor receives principal + interest) or foreclosure (investor may acquire property).
Performance tracking. Portfolio analytics.
Property falls behind
Notice & advertising
Sale list published
Auction day
Redemption period
Outcome
ArrearIQ provides the data infrastructure that makes tax lien economics work at any scale.
Disclaimer: Tax lien investing involves real risk, including redemption uncertainty, title issues, environmental liability, and regulatory changes. ArrearIQ provides data and tools, not investment recommendations. Past redemption rates are not guarantees of future performance. Consult qualified professionals before investing.