Perfect the Title

I found another useful tip about tax deeds. Thank you for posting this information, I found it very useful and informative. Good luck on all your deals. Believe and Achieve!

What are you saying,Even though you buy a deed thru GOV. the original owner still has right to the property and I would expect alittle better service from the GOV dept. that sold me the deed...To make sure that it was clean title! And throw in creditors and law suits in the mix too. My point is you have to have clean title if your running good business.I do appreciate your post.

rand

I sure would rather pay a couple of hundred dollars and fix up the house and use it as free and clear income No morgage.Think about 20 of them houses!!!!Instead of getting a morgage and making a $100 or $2oo a month above your payment!So what you spend $2ooo to get clear title. Just my opion.

darrellf334, I'm looking to go to my first tax sale next month. Can you or anyone else explain what you do or how to find out about a clear deed? If the mortgage company is still on there? You mentioned $2000 to get clear title. What is entailed in clearing the title? Would love direction on this one please.
Barbara

Barbara, you need to research what process your state uses, tax deed versus tax lien. In general, the state tax laws put the tax lien ahead of other mortgage holders. In my state, during the one year redemption period, either the seller or their lender could pay the delinquent taxes and penalties to retain ownership or mortgage position. In my state the tax lien holder has do a title search and notify all owners of record and any lienholder by certified mail of the pending expiration of their redemption period. If neither step up and pay, the tax lien holder gets the property free and clear of other liens.

Another way to get marketable title in a tax lien situation is to get the former owner to quit claim their interest. I bought a tax lien property and went through the one year redemption period. The former owner lived out of the area. He was willing to sign a quit claim deed giving up his interest in the property if I allowed him to remove his personal property. I had the deed drawn up, he signed it, picked up his personal property and I avoided the court proceedings of a quiet title suit.

boconner I have talk to many property owners and some are nice and others not so nice! For example I called one owner she didn't want anything to do with the property or the state it was in. She told me she would rather I went through the court process instead of paying her some money to sign the deed over to me! Oh well though the process we go!

Close to one-half of the states are tax lien states, and the other half are tax deed states. A tax lien state is one where a lien is filed on a property by the county for failure to pay the property taxes. The investor who buys that lien does not now own the property! This investor only has a lien on the property.

Darrell, when talking with the property owner, point out the benefit of working with you. For example, they may be concerned that their name will be on public postings of delinquent taxes, if the property needs work is a potential liablility to the current owner then dealing with you, by deeding the property to you resolves their issues now, not down the road when the tax lien process has run its course. Many owners are willing to work with you so long as it doesn't cost them any money. Try to determine what they see as the "problem" with the property and solve that problem for them. Do your homework though, if there is a mortgage on the property, you need to let the property go through the entire tax lien process to wipe other claims from the property.