So i bought a house that didn't sell at auction about a month ago. I already did the title search. It's a 60 to 90 waiting period before I get the deed. It killing me to not being able to work on the house. (A guy I know said DO NOT invest any money in the house till you get the deed.) Because if i do the deed will come back messed up. With my luck that's what will happen. So my question is.... Is there any way to get around the 60 to 90 day period. Or since i have the Bidding Purchase contract that should protect me if the deed comes back wrong? Right?
Also would like to ask can I REFI the house with a tax deed? Plan to BRRR. I am in IL!
FIrst property for me and plan on using the money from the refi to invest in a apartment complex.
Sorry for all the questions. Newbie so any and all help and tips are appreciated. Tired to look on my own but couldn't find much! Thank you a lot in advanced.!
Talk to a local real estate attorney, NOW. You may have bought yourself a problem....tax sale laws are complicated, you could have some serious liens on the property.....there's a reason why the regulars didn't buy it at the sale.
The biggest confusion with purchasing tax deeds is the fact that each state has different laws, some more confusing than others. I have just recently started looking into bidding on unpurchased tax deed property in Oklahoma (here it's refered to as county commissioner held property), so I'm not sure what the deeding process looks like.
However my advise (non-legal professional) is not to do anything without a deed in hand. In Oklahoma (I'm not sure about Illinois) a tax deed nullifies all previous liens except for IRS liens and city and county fees (which are included in the starting bid of a property).
As for refinancing a tax deeded property, I had to first quiet the title on the properties I bought, and then I could use the properties as collateral for a construction loan (which rolled over to a traditional mortgage).
Honestly, the best resource I have found for questions like this, is my local county treasurer. If you have a question, its best to just go ask them. As long as you are polite and inquisitive, most are happy to help however they can or direct you to someone who can answer questions.
Does it really take 30 to 60 days? My state says on paper it can take up to 3 to 4 weeks after the money has been received but it came in the mail the next week.
Also keep in mind that Healthcare Liens also stay with the property. I have seen many people bid on stuff that has liens attached. (I stopped one elderly lady from bidding on a property last year because there were liens on the property that were more than the property was selling for and she had no idea. Yes, it's a buyer beware sale and they say that multiple times throughout the auction but people get caught up in the magic of an auction and do silly things.)
I quiet title all of my tax sale properties prior to doing any work on them. Quiet title for me starts at $1500 but I have had some that are much more than that due to complications that arise.
You are also responsible for any code violations that are not recorded but have occurred prior to your purchase. (Yes, I've been stung by this.) My advice is to just do a lot of research prior to bidding on the properties... and make sure you look at the properties' title just before you bid on it.... something might have been recorded since the last time you researched it until the sale.
And word of caution.. don't bid on properties just because someone else does. There is a lot of frenetic energy at these auctions. People start bidding things up because they see someone else bidding.... not because they actually have knowledge of the property.
You also don't know someone's motivation on the property. It may not be because they are an investor but the house or lot belonged to their great grandmother, or they own the property adjacent to it... or has major foundation issues but they own a foundation company.
Thanks for the advice. I got title search done (makes sure there's no liens on the property) already. The reason nobody bought it is probably because where i am there's not many real estate investors. I bought it after auction. so no bidding wars.
I am an attorney in Illinois and my practice area is focused on real estate tax sale and tax deed issues. Not only is the law different state to state, but within Illinois the laws and the application of those laws differ county to county. Tax deeds are a great way to clean up title issues, outstanding taxes and liens. Please send me a personal message and we can sort out your issue.
If you need a good real estate attorney, Bob Borla with Borla North & Associates in Downers Grove is a great one. Feel free to let him know I sent you. Message me if you'd like the contact info!
@Kenneth Lee I am assuming you bought this at a judicial auction and you paid the entire funds within 24 - 48 hours. Previously I used to represent financial institutions in precisely these types of matters. If this is the case, the next step is that the Sale has to be approved by the Court. The Plaintiff Bank's attorney will motion this matter up before the court and at that point it will be approved, this means the sale will be final. After that, eventually you will get the deed.
If you do wish to speed up the process, you can hire an attorney. Although my firm handles these types of matter routinely, @Stephany Trombello also provided a good referral as I have worked with Mr. Borla in the past and my experience with them has been good. However, you will simply be paying to speed up the process a bit.
If you'd really like to speed up the process potentially without spending more money, you can call the Plaintiff's attorney and explain to him the urgency of getting this sale approved (ex. deteriorating property, etc) and obtain a timeline from him.
DM me if you have any other questions.
@Kenneth Lee If you don't mind clarifying, can you please explain the course of events a little better. Namely, did you bid at an auction or did you make an offer through a realtor or other medium. Are you simply waiting for the physical recorded deed to be in your possession or have you not yet closed? With a little more information I can tell you what is to come and where you currently stand.
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