I have 2 good leads on properties that are in the 1 year redemption period after tax sale.
1) Can I buy the property directly from them and get the deed prior to the end of the redemption period and then payoff the winner of the tax sale auction who has the right to redeem? Or can it only be the current owner who can settle up with the auction winner?
2) Any ideas for direct engagement with the property owners? My offers have fallen on deaf ears and they are likely to walk away with nothing if they don’t act soon.
In Texas you can no longer buy the redemption rights. This is a fairly recent development....maybe 2-3 years old.
Remember you are dealing with people who never responded to government inquires, lawyer notices, and probably a ton of investor offers already. They doesn't mean the won't respond to you or your out of the box marketing...but this shows you even if it makes great sense...they don't always respond.
@Adam R. you may not be able to buy the redemption rights, but you may (I don't know) be able to buy the property and at settlement the redemption gets paid out of the sellers proceeds. I would double check with @Bruce Lynn or someone else who knows TX tax sale law. I am curious what Bruce would say, he knows his stuff.
It seems awfully odd that an owner cannot sell their property to preserve their equity. If that is true, my guess is the law would not hold up constitutionally. But that is not a battle you want to fight.
Regarding #2, just because someone should be motivated does not mean they are motivated. It is a numbers game you keep trying until you find someone who is interested in talking to you. Also follow up can be affective as peoples minds and moods change over time.
PS I just noticed Bruce was referring to TX but you are in Rhode Island. The laws vary tremendously by State.
@Adam R. I've never seen anyone do it, not sure it could be done....and I don't know a think about RI tax sales. I'd check with a creative attorney where you are trying to do this and is excellent at real estate. Maybe you could lend with deed of trust with title cutting check to the current owner or tax authority or whoever gets the funds in your location. Personally I would not want the funds going to the previous owner. This is kind of tricky as I would think deed is in new owner's name, so they can't really sell you the property, because they don't own it any more. You don't want to advance them the funds as they have no way today to deed you or encumber the property. Maybe if they own some other asset you could lend on that and they use the funds to redeem and then sell you the property. Lots of moving parts there. Then again, if they had assets or money, they probably would have paid the taxes to start with or could pay them now.
I'd probably 1st find out if you can buy redemption rights where the property is/your location.
@Bruce Lynn in my area we sell properties all the time that we have tax sale foreclosure judgements on but not recorded title. The sale and collecting and distributing all the proceeds are done in one transaction. Well technically it might be two transactions but it is all handled in one sitting.
What I do above, seems like a similar situation to what you are thinking. I would think a good title company should be able to handle this. But is it even legal in TX? Seem like a curious law.