Tax Deed sales

6 Replies

I would like to get a better understanding of what happens if you purchase a tax deed certificate and the property has a mortgage, or other liens against it.

If I purchased the deed to a property how do I get rid of the other liens attached? Do I have to pay them off or what?

When you purchase a Tax DEED at auction the other liens (mortgage, deed of trust) are wiped out. Other liens may remain in some states so you have to check you local jurisdiction for what liens will remain.

You may be confused though because you say above 'tax deed certificate' which there is no such document.

I frequent tax sales in my area and have either received a tax deed or a tax lien certificate

before I bid for a deed I learn the rules for the area and also check for IRS lien it can bite you It lasts 120 days, some state or county liens may stick

I have seen child support lien or in one case a 20k medical lien(somehow connected to a state university) stick

Here I wait a year and do a quiet title depends on the state

@Carlton White

Tax deed is more superior lien than most lien in GA as stated except state, IRS, city or county. I do not know about HOA( But if your spread is big enough, I do not see it as major issue).

You have to wait one year before barring the right of redemption. you get additional 10% the second year while in the process of barment. The owner still has approximately 45 days to redeem at this stage. After that they lost the right.

You still has to clear title if you want to sell to a home owner, otherwise they can not get title insurance & financing. If you use it for yourself, you do not need to clear title.

Understanding that Quiet Title suits probably vary in cost from state to state (and possibly depending on the complexity of the title's "cloud"), can anyone venture a SWAG on what one would expect to pay to execute one between filing fees and legal assistance, etc...?

@Eric H.  you may want to check out this more recent and extensive thread on the tax deed subject here. Based on my research in the FL market it will cost somewhere about $4K or so to do a quiet title in FL. If you want some more info on the subject there's a local RE attorney in Orlando that I mentioned in the other thread. I've worked with her a few times and she is very active with the local REIA, so should be able to give you some good insight to the local market.

One thing to mention in that thread is the Tax title service, it seems like they can get marketable title without the need for a quiet title action for cheaper...haven't done it myself but Steven Soto in that thread seems to be active in that arena and can probably help as well.

@Matt Devincenzo  Is pretty dead on if you are going through an attorney. My underwriter works with a company that can do it for way less and will only charge the full amount IF they can clear it. Its called ***This is not advertising for the business just helping out fellow real estate professionals.

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