A primer on risk management of tax sale property

by Chris on January 31, 2012

Many investors are attracted to tax sales for the ostensibly low risk. However, often times purchasers may find that buying tax sale property can be more of a headache than an investment. This is especially true if a buyer is unaware of speed bumps that may arise in teh future that can greatly reduce your investments. The first thing to keep in mind is that once you purchase the property, you become the holder of a tax sale certificate. More importantly, the property will then be assessed in your name, and your name will appear on all subsequent tax bills. Since you are now the assessed owner you are expected to pay all taxes as they become due, and without the benefit of any exemption that may have existed. Your name appears on the public record, meaning anything to do, or any action taken with respect to that property will also be directed to you. Look for more posts to come discussing the risks involved in purchasing tax sale property, and possible ways to mitigate those risks.

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