What Are The Risks In Investing In Tax Lien Certificates?
Tags: Certificates, Investing, Investing In Tax Lien Certificates, Lien, Risks, Tax Certificates, Tax Lien Certificates
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on Sunday, January 24th, 2010 at 11:33 am and is filed under Tax Lien Certificates.
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The first answer is good. The other thing that can happen is that at the last minute the owner pays it off, so you think you’re gonna make a killing and you really don’t.
The risks are minimal.
Perhaps the greatest risk might be part of the best case scenario. If the owner is unable or unwilling to pay off the lien, then you have to opportunity to obtain that property.
The risk is that the final costs to obtain the property from legal and court fees might be too substantial for you come up with. However, if there is a lot of equity in the property you may be able to get a loan against it.
Check with the county or state treasurer (who ever is selling the lien) to figure out the final costs to close the deal.