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Hans Landa
  • Real Estate Investor
  • Charlotte, NC
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Title Insurance on In rem Tax Sale in NC

Hans Landa
  • Real Estate Investor
  • Charlotte, NC
Posted Jan 9 2017, 14:18

Bought a house on 100+ acre piece of land in small town.  Already have a buyer lined up to recover 50% of purchase price for 20 of the acres but having trouble getting title insurance. There are only 2 attorneys in this town.  One has a conflict and the other is gouging me and giving me inconsistent and confusing information.  

This property has been in same hands since 1942 so title search was easy.  However, when service was made the owner did not sign for certified mail when the tax office sent the letter notifying of judgment.  Owner did however sign second letter sent by sheriff.  When I looked at the file, I saw the green card and thought I  am ok. Attorney says maybe this means lack of service.   He charged me $750 to do title opinion and search.  He says I may have to adversely possess property under color of title for 7 years.

This is my first in rem sale but have purchased many mortgage style foreclosures and have never had a problem getting title insurance.  How should I proceed?  I have tried calling attorneys in other nearby towns with no interest in taking case in this town.