Steps in Protecting Your Tax Lien and Tax Deed Investment

What do you do to protect your tax lien investment? Below are useful tips in ensuring your investment is profitable:

1. Have your tax lien or tax deed recorded in the county because it may prove to be worthless if the county records don’t have it listed. This task is done for you in many states but just make sure to have it listed right away. You may have to wait for the tax certificate and when you do get a hold of it, you will then need to send the original document that comes with a recording fee to the county records office. The fee may differ from each county or state. To know the exact fee on how much you have to send, call the county clerk or recorder. There’s a possibility that the documents will be returned to you if you don’t send the right payment.

2. Make a copy of the tax deed or tax lien certificate before you have it recorded.

3. Send the tax certificate with a return receipt through certified mail. By doing this, you will have proof of sending the document if in case it gets lost and you can just have it replaced. Take note that the recording process may take some time and if anything goes wrong with the sending or receiving process, you still have another certificate copy.

4. Place the document in a secured place once you receive it from the county records. You will have to present the signed document to be able to receive redemption from the tax certificate.

5. Make sure that the redemption amount is exactly the same amount that is due before signing and handing it over to the tax collector.

6. To have all your recording fees, tax payments, and other extra expenses accounted for, provide affidavit for all these payments to the tax collector.

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