What are the 8 biggest Risks of Tax Lien Investing? — Tax Sales Support
Here are nine significant risks associated with tax lien investing: 1. Illiquidity : Tax lien investments can be illiquid, meaning it may be difficult to sell them quickly if you need to access your funds in a hurry. 2. Property Condition : Properties with tax liens may be in poor condition or require significant repairs, which can decrease their value or require additional investment. 3. Legal Risks: Tax lien investing involves navigating complex legal processes and regulations. Failure to understand these laws can lead to costly mistakes or loss of investment. 4. Senior Liens: In some cases, there may be senior liens or mortgages on the property that take precedence over the tax lien, meaning you may not be able to recoup your investment if the property goes into foreclosure. 5. Redemption Risk: Property owners have a redemption period during which they can pay off the tax lien and reclaim their property....