Tax Lien Certificates

Security & Problems to Avoid

One of the great benefits of investing in Tax defaulted property, is their security. There are few investments where you secured by something as stable as Real Estate that can produce such high rates of return. A tax lien is almost always the first or primary lien. This means that once the property is transferred (if you get a deed to the property), all other liens are extinguished. There are a few instances when a property may have a higher priority lien against it, which is why you need to do your homework. One lien that will probably take precedent over all others is a federal lien. If you invest in a property that has a higher priority lien, and end up getting a deed to the property, you also inherit the liability. Luckily, this is an easy problem to avoid. Once you have the list of properties available, you can check with your County Auditor or Recorder’s office to see all liens against the property of interest. Some counties have all liens against each property listed on the auction list.