This blog may be a bit scary for many readers but let me give a quick preface. Auctions and tax deed properties are incredible investments but it’s crucial to know what you’re doing. That’s what we’re all about, making sure you’re informed to take action and make money. Tax deed sales can be an incredible opportunity to buy tax deed properties for pennies on the dollar but there are a few things to watch out for before attending. For example, in many states when you purchase a tax deed property you own the property free and clear while in other states the property may not be completely free of all encumbrances. Let’s look at the worst example I could find. Pennsylvania can be one of the most fabulous places to invest. They are generally very easy to work with and make the investing process pretty pleasant. There are a few different ways you can buy tax deed properties at tax deed sales in Pennsylvania; three of which are called repository, judicial, and upset sales. The upset auctions are the bad example I’m referring to. The rules regarding a property sold at an upset sale are that all other liens remain intact on the deed. Ouch… that means if you buys a property with other liens, mortgages, etc., then you are responsible for them. If you buy one of these properties then you made one of two mistakes: The first mistake made in buying this property at the upset tax deed sale is that you probably didn’t completely understand the rules of the state and county. As mentioned in my last blog about tax deed sales it’s crucial to contact the county and learn their specific procedures and rules before attending and purchasing Tax Deed Properties. This is one of those details that you should look out for. “Are the properties sold at this auction free and clear of all encumbrances and liens..?” This may be a blanket “Yes” or “No” answer or a “Maybe” which leads to the next error. If you bought a property at a tax deed sale that has encumbrances and liens that you are responsible for, then chances are you didn’t do the necessary due diligence on that property. When you research a property not only are you looking at property type, values, etc., but you’re looking for potential liens and encumbrances that you may be responsible for. Once you find this you are a more informed investor. The property may only have a mechanic’s lien valued at $50 and you will make $10,000 on the deal so it’s still a good investment. Or the property may have a mortgage you’re responsible for worth $50,000 and you’re set to make $10,000. One situation is good and the other is not so good. The moral of the story is this: tax deed investing is an awesome opportunity. There are pitfalls in certain areas but they can be easily avoided with the proper help and knowledge. That’s what No Risk Investor is all about: taking the RISK OUT OF INVESTING! That includes investing in Pennsylvania. Don’t be afraid, be happy that you just learned about potential pitfalls in upset auctions in Pennsylvania. 0 false 18 pt 18 pt 0 0 false false false No Risk Investor is the ultimate resource and tool for Tax Lien Properties, deed, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.