Brooklyn, NY · Member since 2016 · 11 posts · 0 votes
Hello Everyone,
I need some help on deciding what to do here. Recently, I bought a property from a California Tax Deed auction. I need to do a renovation that costs about 20K. I read that there is a 1 year period that the original title holders can claim back the property if; 1) the county didn't correctly publish the sales; 2) the original title owners were not notified according to the procedure dictated by the state. What are the chance that the county makes these 2 mistakes? I can find out if the county publish the sales correctly by checking the history of the new paper easily. But I can not find out whether the original title owners were notified according to law. Should I go and do the renovation? Will a quiet title action, Tax Title Service, or special title stop the original title holders from claiming the property?
Investor · Irvine, CA · Member since 2016 · 81 posts · 27 votes
9y
No title company will insure your property unless it's more 1 year old. I would suggest you hold off renovation until then. It is hard to predict the outcome of a legal proceeding.
Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
9y
One technique I have seen is to obtain a quit claim deed from the previous owners. That cuts off their ability to contest the sale. I haven't done it yet so I can't comment on how much you would need to pay the former owners to sign a deed. I have bought at tax sales but I have held the properties as rentals more than a year.
Investor · Irvine, CA · Member since 2016 · 81 posts · 27 votes
9y
Victor Nelson I am curious how you would make the previous owners willingly produce a quitclaim deed? They usually have no incentives and probably not in the best mood either. Thanks!
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
9y
Tax Title Services in Costa Mesa, CA offere an alternative to waiting for the statute to run the entire year. I think they still underwrite through Stewart Title.
Please share the basic #'s as well as the zip code.
Using a little logic here, you wish to rush into spending $20K so that you can begin renting and receiving X per month.
If the property is in a high density area or establish suburban neighborhood you gave a higher chance of prior owner or estate attempting to redeem than in remote area.
I've worked all of these type deals. Redemption is only a major risk if the record owner claims defective notice and $50K + equity at stake.
The way I work these is to skip trace and buy any and all rights for redemption and I also claim overbid, thereby working both sides like a Russian Military Arms dealer.