Tax Liens & Deeds FAQ

Q: What about first mortgages and other liens?
A: Tax deeds and tax lien certificates hold seniority over any lien or mortgage (excluding city) attached to
the property and/or anyone else having interest in the property.

There are two exceptions to this rule:
1. The IRS has priority over all previous liens but limits their collection time to six months.
2. Certain states reserve their rights to take priority.

Q: Why have I not heard of these investments before?
A: Individuals have been investing in tax deeds and tax lien certificates for decades, gaining the same kind
of profits that we have already explained. Unfortunately, tax liens require a lot of knowledge and
usually the only people who invest are those already in a related field. Now, agents like PIP-West are
making this investment more popular.

Q: What are the risks and how can I lose?
A: • Invest without experience and proper knowledge.
• Hire an agent who has little knowledge and their bottom line, not your investments, in mind
• Purchase liens on useless property
• Purchase liens which exceed property value
• Bankruptcy
• IRS liens

Q: What are the hidden costs?
A: There are no hidden costs. Depending on the area we are investing, you may find that there is a $10
registration fee, or possibly a redemption fee of $15 the county assesses. Certain states/counties
require a Take Notice fees and/or Lien Assignment fees. These costs are often refunded through the
redemption process.

Q: How can I be certain you place my investments properly?
A: The Tax Deeds and Tax Lien Certificates are purchased for you, in your name. We are contracted to do
so. In addition, investment checks have always been made payable to the County government,
although the counties have increasingly been changing their processes and procedures that could
affect this method of payment for the purchases. Our procedures are subject to the rules that the
County sets.

Q: What are the costs involved with foreclosure?
A: Cost can vary greatly.
• We have foreclosed tax lien certificates for as little as $30, and for as much as $3500.
• The average cost to foreclose is approximately $1,500.

Q: What are my liabilities?
A: Prior to Maturation and Foreclosure, No Liabilities – When you own a lien, you do not own the property,
or any rights to it. Following Maturation and Foreclosure, we recommend that you treat the property
as you would your own home and protect yourself against liable matters.

Q: What if I decide to do this on my own, without your help?
A: Investing in tax lien certificates can be extremely rewarding. Unfortunately, many tax lien investors
don’t realize that you can suffer substantial losses and in some cases, complete loss if proper
research is not done prior to the purchase of tax liens.

Q: Once I foreclose or purchase a property, can I sell it?
A: Yes. Upon paying the bid price of the property, plus recording/stamping fees, you are free to do with the
property as you wish. However, we recommend “quieting” the title immediately upon purchase.

Q: What if the property I own needs maintenance?
A: As your agent, PIP-West provides you with professionals in all aspects of real estate and property
maintenance. Whether you need a lease agreement, closing statement executed, plumbing, or a home
painted, PIP-West has the ability to suit every need possible or obtain specialized services that can.