Getting title insurance after tax-deed sale purchase in CA
Flipper/Rehabber · Monterey, CA · Member since 2014 · 193 posts · 117 votes
Howdy,
I bought a couple of lots at a county tax-deed auction a little over 1.25 years ago. At that time, the word on the street was that one could get title insurance either by waiting a year after purchase, or by paying big bucks to Tax Title Services.
I'm considering selling one of these lots, and now I'm hearing from title companies that I have to wait 2-5 years to get title insurance.
Does anyone have experience with this, and have you found any other way to get title insurance sooner?
Thank you!
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
I would contact your local title company and get a straight answer.
I work with a group of tax lien investors and we sell them no problem at a title company, I am assuming with title insurance.
Thanks, @Sarah Ziehr! I'm glad to hear you've had success, though I think tax liens and tax deeds are different animals. I've been calling a couple of my local title companies, and that's where I'm getting this discouraging information. I guess I'll call a few more!
Hmmm... I believe they are tax deeds. They invest in tax liens, then get the deed if the taxes are not paid back with interest after a few years. They talk about "cost of deed" all the time. I honestly don't know the specifics, but could find out more.
According to my sources, CA is a tax deed state with a 1 year right of redemption.
California is also a true deed state with no redemption period and no interest rate or penalty. However, even though there is no redemption period after the sale, the owner (or a lien holder) has 1 year to initiate proceedings to challenge the validity or irregularity of the tax sale.
I think if you want title, you are in your right to pursue that either with TTS or an attorney.
Best of luck
Joe
Thank you, @Joe Mclain!
I had thought that one could obtain title insurance without much cost after a year from purchase, but I haven't found any title company that will do that anymore. I seem to have to go through TTS, which costs. But I'll do it!
California is most definitely a Tax-deed sale state. There is no redemption period for delinquent taxes. After 5 years of delinquent taxes the county can foreclose on your property. The property owner has until 5 pm the day before the sale to cure the taxes. Meaning pay all tax delinquencies. Once the tax deed sale is complete the redemption is lost. However, if there is a dwelling on the property there is 1 year from the auction date to cure the loan. Meaning paying all fees. Penalties, outstanding mortgage balances, liens, judgements, etc... paid in full. Then the owner can take their house back.
Sounds you shouldn't listen to the rumor mill... It does sound weird that you could just "get" Title Insurance. Of course, you'd have to pay the insurance premium to get it. Title Insurance is regulated by state to include the fees. So, it shouldn't really matter what Title company you use...
Good luck.
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
California is most definitely a Tax-deed sale state. There is no redemption period for delinquent taxes. After 5 years of delinquent taxes the county can foreclose on your property. The property owner has until 5 pm the day before the sale to cure the taxes. Meaning pay all tax delinquencies. Once the tax deed sale is complete the redemption is lost. However, if there is a dwelling on the property there is 1 year from the auction date to cure the loan. Meaning paying all fees. Penalties, outstanding mortgage balances, liens, judgements, etc... paid in full. Then the owner can take their house back.
Sounds you shouldn't listen to the rumor mill... It does sound weird that you could just "get" Title Insurance. Of course, you'd have to pay the insurance premium to get it. Title Insurance is regulated by state to include the fees. So, it shouldn't really matter what Title company you use...
Good luck.
Hi David,
Just to clear up the misunderstanding, by "get title insurance," I meant pay for it.
And, in fact, seven years ago when I made the original post in this thread, it mattered a lot which title company one used. I don't know how things are now, but at that time I called about a dozen title companies, and only found one that would work with me when I was selling a lot that I bought at a tax-deed sale a little over a year before. Title companies were extremely nervous about properties purchased at tax deed sales at that point. I assume that nervousness came about because some tax-deed sales didn't stand up in court.
If anyone knows that current status of this subject (title companies' willingness to work with someone selling a property purchased at a tax-deed sale), I'd be interested in hearing about it!
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
Hi Josue,
Thank you for your update on the state of things! And I appreciate your offer to refer me to title companies that will work with a seller of a property bought at a tax-deed auction. Fortunately, the situation I posted about that started this thread is well behind me now. I worked with the one title company I found that would handle such a sale, and the sale was completed (with the help of Tax Title Services).
I haven't bought any properties at tax-deed auctions in the intervening years, but I still look at the properties up for auction. If I jump back into that arena, I'd love to get your advice!
For now, can you say a bit more about what those "few more hoops" are that you referred to? I did most of my tax-deed purchases around 2015, so no doubt there have been a few changes.
Thanks again!
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
Hi Josue - I would love to learn more about these companies who help with Tax deed sales. Will drop you a dm as well.
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
Hi Josue,
Thank you for your update on the state of things! And I appreciate your offer to refer me to title companies that will work with a seller of a property bought at a tax-deed auction. Fortunately, the situation I posted about that started this thread is well behind me now. I worked with the one title company I found that would handle such a sale, and the sale was completed (with the help of Tax Title Services).
I haven't bought any properties at tax-deed auctions in the intervening years, but I still look at the properties up for auction. If I jump back into that arena, I'd love to get your advice!
For now, can you say a bit more about what those "few more hoops" are that you referred to? I did most of my tax-deed purchases around 2015, so no doubt there have been a few changes.
Thanks again!
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
Hi Josue,
Thank you for your update on the state of things! And I appreciate your offer to refer me to title companies that will work with a seller of a property bought at a tax-deed auction. Fortunately, the situation I posted about that started this thread is well behind me now. I worked with the one title company I found that would handle such a sale, and the sale was completed (with the help of Tax Title Services).
I haven't bought any properties at tax-deed auctions in the intervening years, but I still look at the properties up for auction. If I jump back into that arena, I'd love to get your advice!
For now, can you say a bit more about what those "few more hoops" are that you referred to? I did most of my tax-deed purchases around 2015, so no doubt there have been a few changes.
Thanks again!
Hi Carol! Only specific title companies will handle this - I can refer you if that would help. There can be a few more steps specific to properties bought at tax deed auctions here in California. I've sold a few this year and have a few coming up - not rocket science but definitely a few more hoops and only a few title and escrow companies will work on them. Hope this helps!
Hi Josue,
Thank you for your update on the state of things! And I appreciate your offer to refer me to title companies that will work with a seller of a property bought at a tax-deed auction. Fortunately, the situation I posted about that started this thread is well behind me now. I worked with the one title company I found that would handle such a sale, and the sale was completed (with the help of Tax Title Services).
I haven't bought any properties at tax-deed auctions in the intervening years, but I still look at the properties up for auction. If I jump back into that arena, I'd love to get your advice!
For now, can you say a bit more about what those "few more hoops" are that you referred to? I did most of my tax-deed purchases around 2015, so no doubt there have been a few changes.
Thanks again!