Lien & deed investing checklist. Toggle between investment types below.
Verify the asset before you commit capital
Checked whether the owner lives in the property (homestead-exempt), rents it to tenants, or has left it vacant. Owner-occupied properties redeem at significantly higher rates than investor-owned or vacant parcels.
High Redemption Factor — Owner Occupancy Check the county assessor record for a homestead exemption — if listed, the owner lives there. Compare the tax mailing address to the property address: a match signals owner-occupied; a PO box or different address signals investment-owned. Owner-occupied redeems at 85–92%; vacant parcels at 30–50%.Searched county recorder records for a recorded Deed of Trust or Mortgage. A mortgage servicer will often redeem the lien automatically to protect their collateral.
High Redemption Factor — Active Mortgage A major bank servicer (Chase, Wells Fargo, BofA) has automated systems that monitor tax status — redemption is near-certain if a current mortgage exists. Look for a Deed of Trust in the county recorder records. Also check for a Deed of Reconveyance (filed when a mortgage is paid off) to confirm it's still active.Residential, commercial, vacant land, or agricultural. Vacant land and commercial carry different risk profiles — verify before bidding.
High Redemption Factor — Property Type SFR redeems at the highest rate. Vacant land redeems at the lowest (25–40%). Mobile homes on rented land — avoid entirely. Check assessor use code: 100s = residential, 500s = vacant/ag.Confirmed the parcel exists, is accessible by road, and matches the address listed. Checked satellite view and/or drove by in person.
Medium Redemption Factor — Marketability Landlocked parcels with no road access have near-zero market value — no lender will finance them and they are extremely hard to sell. Also check Google Street View history for occupancy signals: maintained lawn, cars, personal property visible.The lien amount should be a small fraction of assessed value — typically under 10%. High lien-to-value ratios signal elevated risk.
Confirmed the minimum bid is well below estimated market or resale value. Factored in repair costs, carrying costs, and closing costs before calculating margin.
High Redemption Factor — Equity Cushion (LTV) Under 10% LTV: owner has strong financial reason to redeem — they're protecting real equity. Over 35%: redemption depends on emotional attachment, not math. Use the Lien Value Calculator to compute exact LTV and risk rating. Don't forget to add prior-year liens to the total owed.If this is not the first year of delinquency, prior-year liens may exist. Older liens have priority and may need to be satisfied before yours can be enforced.
High Redemption Factor — Delinquency History First-time delinquency on a clean record = likely temporary hardship, high redemption probability. Three or more stacked years = owner has likely mentally abandoned the property. Also note who holds each prior year's certificate — if one investor holds all years, they may be building toward foreclosure.IRS liens are searchable at the county recorder's office and via PACER. Federal liens survive most tax sales and carry their own redemption rights.
HOA liens survive tax sales in some states. Code violation liens (nuisance orders, demolition orders) can obligate you to spend money on the property regardless of ownership.
Medium Redemption Factor — Marketability HOA super-liens (NV, CO, and others) may be senior to your certificate. A demolition order on a condemned structure makes the property a liability, not an asset — avoid. Check the county's code enforcement database (many are searchable online) for active violations or condemnation orders.Confirmed the property can be used as you intend. Checked for pending rezoning, variances, or non-conforming use issues.
A bankruptcy filing by the property owner may create an automatic stay that prevents the auction from proceeding or your lien from being enforced. Verify via PACER.
Drove by or hired an agent to assess visible condition. Noted any structural issues, vandalism, or signs of squatters. You receive the property as-is — no warranties.
Medium Redemption Factor — Property Condition For lien investing: a well-maintained, occupied property signals an engaged owner — high redemption probability. Boarded-up or visibly abandoned signals the owner has walked away. Check county building permits database — recent permits mean an actively invested owner.Developed a realistic rehab budget. Confirmed these costs still leave meaningful margin at your expected purchase price.
Reviewed for known contamination, underground storage tanks, flood zone designation, or prior industrial use. Environmental liens may survive the tax sale.
Medium Redemption Factor — Marketability Known contamination = avoid entirely. Cleanup liability can exceed property value, and you may inherit it if you foreclose. Check EPA's EnviroMapper for known sites. FEMA flood maps (msc.fema.gov) show flood zone designation which suppresses financing and resale value.Identify encumbrances that survive the sale
Full title search covering at minimum the past 5 years. Identified all recorded encumbrances: mortgages, judgments, HOA liens, and code violation liens.
No gaps in the ownership record that could lead to a future title challenge. Confirmed the current owner of record matches the county tax roll.
Contact a title company before the auction to confirm they will issue a policy on a tax deed in this county. Some counties have deed issues that make title insurance difficult to obtain.
Calculated total of all senior claims against the property. Verified property value exceeds this amount plus your lien — otherwise foreclosure yields nothing.