Tax Foreclosed Property: strategy to clean the title?

2 Replies

Greetings BP,

I purchased a tax foreclosed property in Detroit and let the previous owner stay in the property for 10 months to 'house sit' while I was busy with other projects. We have a good rapport, and she will be moving out next month. My plan is to sell the property this summer. Here's the question: should I try to get her to quitclaim any interest she has in the property to me instead of quieting the title (even though I currently hold title via quitclaim deed from the county)? And if so, is it worth incentivizing her to do a quitclaim to the tune of $500? Or, is it unlikely that I would need to quiet the title given that she is the previous owner and I know for a fact that she received all the foreclosure notices?

I recently had two other properties that a title company wouldn't insure (and it sounds like very few title companies are insuring anything that Wayne County foreclosed last year given many legal complaints against the county). For those two particular properties I had to clean up both titles, which cost me $1000 each as a package deal. 

I would just go ahead with quiet title suit. Most buyers are going to ask for a general warranty deed. Even those okay with a lower quality deed would be turned off by the lack of title insurance. Also could have financing issues depending on the bank as well. Out here it take us 45-60 days to get it done. So I'd get it started ASAP if you're wanting a summer sale. 

Originally posted by @Marc M. :

Greetings BP,

I purchased a tax foreclosed property in Detroit and let the previous owner stay in the property for 10 months to 'house sit' while I was busy with other projects. We have a good rapport, and she will be moving out next month. My plan is to sell the property this summer. Here's the question: should I try to get her to quitclaim any interest she has in the property to me instead of quieting the title (even though I currently hold title via quitclaim deed from the county)? And if so, is it worth incentivizing her to do a quitclaim to the tune of $500? Or, is it unlikely that I would need to quiet the title given that she is the previous owner and I know for a fact that she received all the foreclosure notices?

I recently had two other properties that a title company wouldn't insure (and it sounds like very few title companies are insuring anything that Wayne County foreclosed last year given many legal complaints against the county). For those two particular properties I had to clean up both titles, which cost me $1000 each as a package deal. 

 I all varies  to the reason why title companies will not insure the Wayne county deeds from fraud to passed due water bills. Your right....

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