In tax lien investing, reviewing property taxes and assessments is a key part of due diligence. This process helps investors understand any unpaid taxes, penalties, or interest tied to the property and reveals its financial condition. Checking the property's tax payment history can highlight risks, such as multiple liens, while verifying the accuracy of its assessed value ensures it reflects true market worth. These steps help investors avoid legal issues, uncover hidden costs, and make informed decisions. A careful tax and assessment review is essential for reducing risk and improving investment outcomes.
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