Investing in tax liens and deeds can provide solid returns when you are armed with all the relevant facts. Having all the relevant facts includes understanding tax sale risks and how they can vary from one jurisdiction to the next. Three key risks to the success of your investment are found in statutory legal remedies intended to protect the debtor-property owners: redemption, invalidation, and expiration dates. To protect your investment, you must identify and understand these laws in jurisdictions in which you invest.

Areas to Watch when Investing in Tax Liens and Deeds

Just as tax sale auction procedures and bidding systems vary from one jurisdiction to the next, so, too, do the specific remedies that could undermine your investment. Tax sale investors who participate in multiple jurisdictions do so successfully only if they understand and adjust to these and other legal variations regarding tax sales, whether at the state or local level.