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On ebay there are many sellers of lots and houses on "special warranty deeds", which were purchased as tax deed lots/properties from the county. When a property has gotten this status, is a buyer then sure that no back taxes, no mortgage or other liens lean on the property?
What does the county (f.eaxample Charlotte Conty FL) warrenty when they sell a tax deed lot, only free of back taxes, but also free of other claims like banktmorgages and so on?
Thanx for good answers.
Hi,
I have looked at the property we are interested in purchasing for back taxes. Property is very good investment. Have looked through probate records on line - found nothing about the property being owned by a bank. The property has the owner, not the bank, as the person owing the taxes; this is on a site by the gov. for unpaid taxes. The taxes were not paid since 2010. I have made many phone calls to gov. officials. Was told by one person would need to make a quiet title before selling property.
The other property around this property with the unpaid taxes is being built up by little businesses. Therefore, feel it would be a good investment. Would try and sell the land for a reasonable price rather than the over inflated prices some of the real estate are asking for property around here.
I want this property but worried. Mostly worried there might be a mortgage. The way I look at it - if there was a mortgage then the bank would be listed as the owner. The rumor in our part of the woods is the owners went bankrupt 5 to 10 years ago. They bought property and built expensive condos that they could not sell - this is NOT the property I am looking at though. It is other property they purchased. Any help would be appreciated.
You've resurrected an old thread when you probably should have started your own.
Nonetheless, the tax sale process varies from state to state. You will need to familiarize yourself with the particular process in your state, and what happens to liens in the process. If a mortgage is on a property, the bank will usually NOT be listed as the owner. They will definitely not be listed as the owner in Michigan--because they do not own the property, they only hold a mortgage on it.
I have no idea what state you live in, so good luck with your research.
By the way, real estate is not necessarily a good investment. It can be...but there's no guarantee. (If it were such a great investment, there wouldn't be so many tax foreclosures!)
Thanks, I am thinking the same as you. I live in Alabama and this property is commercial - land only, no buildings. The real estate agents have gotten very greedy around here; so, some one would be happy to pay less money for this land. Not trying to put real estate agents down, but the agents around really have unnecessarily drove the price of land up. A lot of people ended up being upside down with their loans, etc.
Kind of funny - I live on an island and family use to own a block and a half. Then the chamber of commerce came over here and my grandma unknowingly signed away all of her land except for a 50 x 100 ft lot - she signed it away with an X. She couldn't read and write - therefore, she didn't know any better. Also, some rich folks almost got that land for unpaid taxes. Thank God my dad intervened on that one.
Yeah, should have started a new thread - not to familiar with forums though.
Me again. How hard is it to sell this type of land? The land would be mine after 3 years of back taxes being paid. Then I was told a quiet title would need to be made. Some one also mentioned some thing about a a court adjudication.
I was looking at some other land - was residential. Guess I asked too many questions and now some one got the jump on me by 2 days; some one else put a request in for application. This land had no taxes paid since 2009.
My son got into tax deed sales a few years back ... and although he is very smart and well-educated, he got totally burned and lost a lot of money.
The trick with investing in tax deeds ... or anything else for that matter, is stick with something you understand! Otherwise, you will be depending on someone else to make your financial decisions for you and 'take care of your interests.'
I have been searching for information on where to start getting information on buying tax defaulted properties. Everything I come across has someone sticking out there hand looking for a payoff. I don't trust sites like those I believe they just want the money. If I can find the stating point I trust I can work from there. Can someone help me? This is my first time at this I'm looking for properties in Charlotte NC.
Check out youtube....also check out county web pages for assessors offices....check out attorneys web pages for these counties....and the best is check out as many of the guys that want to sell you a course...they have lots of info on there videos for free.....I am just starting also......in Texas.....have learned a lot so far.....
Hi,
I have looked at the property we are interested in purchasing for back taxes. Property is very good investment. Have looked through probate records on line - found nothing about the property being owned by a bank. The property has the owner, not the bank, as the person owing the taxes; this is on a site by the gov. for unpaid taxes. The taxes were not paid since 2010. I have made many phone calls to gov. officials. Was told by one person would need to make a quiet title before selling property.
The other property around this property with the unpaid taxes is being built up by little businesses. Therefore, feel it would be a good investment. Would try and sell the land for a reasonable price rather than the over inflated prices some of the real estate are asking for property around here.
I want this property but worried. Mostly worried there might be a mortgage. The way I look at it - if there was a mortgage then the bank would be listed as the owner. The rumor in our part of the woods is the owners went bankrupt 5 to 10 years ago. They bought property and built expensive condos that they could not sell - this is NOT the property I am looking at though. It is other property they purchased. Any help would be appreciated.
The county is obligated to notify any parties with interest on the property...mortgage holder...owner....if it goes to a deed sale, and the mortgage company does not buy it....then whoever buys it is the new owner....although there may be a redemption period period...that is the way I understand it, but I am not an expert by any means...in Texas there is a 6 month redemption period, with %25 interest attached
if tax deed sale wipes out mortgages why experienced
Hi, Thanks for all the info you gave below. I personally think it is very helpful. I have a question:
why experienced investors quickly bid up the properties with no liens if the tax sale would wipe out the mortgages and other liens anyway? I have been doing research but just can't seem to understand this part yet. Please help.
thanks.
Quote:
Originally Posted by 2bindenver
[edit] Tax Deed Sale Process
Real estate taxes are considered delinquent if not paid within a specified period of time. If the taxes are not paid, after notice is given to the property owner (as well as others holding an interest in the property, such as a mortgage company), the property is sold at public auction to the highest bidder. Some jurisdictions require notice only, others requiring filing a judicial action to commence proceedings.
The minimum bid is generally the amount of back taxes owed plus interest, as well as costs associated with selling the property. In the event the property is not purchased, title reverts to the government, and the property may be purchased by any member of the public in a private transaction.
In most cases, the jurisdiction will only provide a quitclaim deed at the sale, which is usually insufficient for title insurance. Therefore, a "quiet title" action must be filed in court to obtain an insurable title.
Some jurisdictions allow a "redemption period", whereby the former owner has a specified amount of time to reclaim the property by repaying the amount bid at auction plus a penalty (for example, Texas allows a 6-month period in most cases, with a flat 25% penalty to be added to the amount paid at sale). As such, purchasers of properties at tax deed sales are cautioned not to make major improvements on the property until after the redemption period has expired.
[edit] Hazards of Tax Deed Sales
The popularity of tax deed and tax lien sales has spawned an entire industry of "experts" claiming to have inside knowledge on how to obtain valuable properties (which, of course, they are willing to sell to gullible members of the public, at highly inflated prices, through their controlled channels). These "experts", however, generally do not explain the pitfalls of tax deed sales.
The primary hazard is that the properties being sold generally are not that valuable. In most cases, a valuable property will be encumbered by a mortgage. Since in most jurisdictions a mortgage would be wiped out at a tax sale, the mortgage company (prior to the sale) will generally pay any delinquent taxes owed and recoup its costs against the mortgagee, thus removing the property from the sale.
The informed investor will do their due diligence on each property that they are interested in buying. Although the Internet can provide considerable information on a property, a physical inspection of the site itself is strongly encouraged.
In the rare event a valuable property is not encumbered by a mortgage, experienced real estate investors with access to large amounts of capital will quickly bid the price beyond the reach of the "average" individual investor. Properties remaining will generally consist of marginal or worthless properties of little or no value to anyone (save, perhaps, a neighboring landowner).
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Starting point....
