What are potential problems with buying tax liens for investment?

Question

I want someone to point me out the potential problems with buying tax liens for investment.

Answer 1

The first thing you have to do is check to ensure that the property is not condemned or facing demolition if it is a distressed property. Secondly you should check for other liens such as IRS that could make it difficult for you to foreclosure if the tax lien does not get paid. There are several search web sites online. My favorite is Lienfax.Com. You can instantly check any property for IRS income tax liens and other liens.