Trouble with Title in a Tax Lien sale
BP,
Does anyone has experience running into trouble getting title insurance on a property they purchased in a County Tax Auction. My business partner bought a SFR at a Wyandotte County KS tax sale.
We have tried 5 different title companies, none will write title insurance. This has created obvious problems. We can't get a hard money loan or resell the property to a buyer after rehabbing it.
The Title companies has said that the county did not properly do "duly notify" to the owner who lost the property in the tax sale due to delinquent taxes. Unless we find and get the old owner to sign a quit claim deep they claim we cannot have a clear title because there is a 15 year period when the old owner could sue to regain possession of the house.
Kansas law appears to be pretty clear, 12 months recourse period to sue and show you were not able to pay the taxes for some reason or were not notified.
Our research revealed the old owner was incarcerated and there attempts by the county to notify him failed. They posted notice on his door. But he was in jail.
We feel that the county sold us a fraudulent property title. But this seems impossible when the county itself was the seller and they stated at the auction that this sale will wipe out all previous mortgages, owners, and liens, obviously it that is not the case.
Does any other investor have experience dealing with Tax Sale houses in any state? Or in Kansas? I know these laws are state specific and vary, but I wonder if someone's experience might be helpful to us?
Anyone has any thoughts or experience with such frustrating and confusing matters related to tax sales of houses? Thanks BP community!!