Lawsuits

2 Replies

Hi Everyone,

With respect to investing in tax liens and/or tax deeds, what is the likelihood of being sued by, say, a disgruntled owner or other entity? Is this risk of lawsuit large or small?

The county is the one doing all the due diligence and issuing the tax deed. You did nothing but buy the lien on the property at auction. Person who lost property would have no grounds to sue you.

I did have someone appeal an eviction. The Magistrate and the 13th circuit court of appeals both recognized my tax deed and did not question that I was the legal owner.

Someone would have to attack the county for not performing due dilegence in accordance with the state law in order to turn over a tax deed.

I think the lawsuits might come in relation to what you can and can not do to the property after you have the deed and before you have clear title.   For example: you might have an instance where you buy the deed and start improving the property and the owner of the property appears out of nowhere stating, he never was noticed.  So wherever you invest, know the rights of redemption by the owner

Joe

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here