Tax Lien Due Diligence Checklist

Description

What is the Tax Lien Due Diligence Checklist?

The Tax Lien Due Diligence Checklist is my 21-question list for tax lien buyers. It walks you from the state down to the county, then to the property itself. Print it and keep a fresh copy for each property you’re looking at, because you’ll be writing on it.

What the 21 questions cover

First, the state. Which one, what the law says, the max interest rate, how long the redemption period runs, and when they hold auctions.

Then the county. You’ll check the posted notices, the sale terms, whether you bid online or have to show up, and whether you need to pre-register. There are questions on the deposit, the deposit deadline, and when your final payment is due. And yes, read the county’s FAQ page. People skip that one.

Then you. What kind of property do you actually want? What are your criteria? What’s your budget? That last one keeps you from bidding on emotion.

Last, the property. Verify the liens. Look for other unpaid tax years, and whether you can buy all of them. Check for code enforcement liens and easements. And look at the condition, even though you’re buying the lien, not the house.

Why use a checklist?

Honestly, because it’s easy to fall in love with a property. A checklist slows you down in a good way. I’d rather you pass on a property because a question didn’t have a good answer than find out after the sale.

There are free lists out there. This is the one I give my students. It’s short enough to use on every property, and it goes in the order you’ll actually do the work.

Who it’s for

New investors getting ready for their first tax lien sale. Also anyone who wants the same routine on every property. Buying tax deeds instead? That’s a different process, and I teach my Pre-Auction Checklist™ inside Tax Deed Genius.

How to use it

Start with questions 1 to 5. The Tax Lien States Spreadsheet has each state’s interest rate and redemption period side by side, so those go fast. Then head to the county tax collector’s website for the auction questions. Can’t find a clear answer? Keep digging, or skip that property. Rules vary by state and county, so check the county’s current terms.

Questions people ask

Is the tax lien due diligence checklist a PDF? Yes. You download it right after checkout and print it.

Does it work in my state? It works in any state that sells tax liens. The answers will come from your state’s law and your county’s rules.

Is it a template I fill in? It’s a question list. Write your answers on the printout or in your own notes, whatever works for you.

Is this a course? No, it’s a tool for your research. If you want me to teach you the whole process, start with Tax Deed Genius Lite.