I bought a Land lot from a tax deed auction with a lien on it. 馃槖

Tax Liens & Mortgage Notes
7yFollow

I bought a Land lot from a tax deed auction with a lien on it. 馃槖

Malcolm Forney
Member since 2019 路 5 posts 路 0 votes

Disclaimer: I did not my proper research before purchase.

Hello my name is Malcolm and I got myself in a pickle and I'm looking for some advice so I can get out of it.

So to make a long story short I stay in Florida and recently purchased a Land lot from the tax deed auction. I was under the impression that if I paid the back taxes I should be ok and boy was I wrong馃槖. I tried to resell it and when the title company ran the title I later found out that very same Land lot has a 31k lien of it from the demolition that was done during a teardown of the previous house. I'm trying to get rid of it. Is there any advice or direction you can point me to so I can take care of this matter? Please and thank you.

0Reply
61 views

Most Popular Reply

Mark Fries
Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
7y
@Malcolm Forney Relax it's not the end of the world... You can sell it with a quit claim deed, easily. If somebody purchases it and then builds a house on it that person can enroll in a program with the local municipality to have the demolition liens waived in full. Or you can keep it, you build the house yourself, get the lien waived, sell it and crush it. Depending on the zoning, you could put 1 or 2 mobile homes on it and rent them out. If it's a commercial lot, try a ground lease to make some money on it... I own MANY properties with tons of municipal liens on them...means nothing in reality...
6Reply
See this reply in the discussion

19 Replies

Jump to latestLatest
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    7y

    Tax lien sales do NOT wipe out liens. Tax DEED SALES wipe out most liens (except gov't liens).  You can try and sell the tax lien certificate but that may not be an easy feat. 

    Tax LIEN sales do not convey the real estate. It gives you the right to collect interest on the past due taxes.  It is a LIEN on the property. 
    Tax DEED sales convey the real estate.  You get a DEED to the property. 

    How much did you spend on the sale. You may have to hold the cert for two years before you can force a sale to recover your investment but that is NOT guaranteed. 

    1Reply
  • Wayne Brooks
    Real Estate Professional 路 West Palm Beach, FL 路 Member since 2012 路 23k+ posts 路 13k+ votes
    7y

    @John Thedford Have another cup of coffee, he bought at the tax deed auction 馃榿.  

    1Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Malcolm Forney Relax it's not the end of the world... You can sell it with a quit claim deed, easily. If somebody purchases it and then builds a house on it that person can enroll in a program with the local municipality to have the demolition liens waived in full. Or you can keep it, you build the house yourself, get the lien waived, sell it and crush it. Depending on the zoning, you could put 1 or 2 mobile homes on it and rent them out. If it's a commercial lot, try a ground lease to make some money on it... I own MANY properties with tons of municipal liens on them...means nothing in reality...
    6Reply
  • Malcolm Forney
    OP
    Member since 2019 路 5 posts 路 0 votes
    7y

    @Mark Fries thanks buddy. Quick question! When doing a quiet claim can the judge deny me because I didn't do my own due diligence before purchasing the property?

    0Reply
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    7y
    Originally posted by @Wayne Brooks:

    @John Thedford Have another cup of coffee, he bought at the tax deed auction 馃榿.  

     The problem wasn't enough coffee it was too much Bailey's Irish Cream with the coffee:)

    1Reply
  • Bruce Lynn
    Real Estate Broker 路 Coppell, TX 路 Member since 2011 路 5k+ posts 路 4k+ votes
    7y

    @Mark Fries   I like your creative thinking.   Too many people jump to one solution or no solution (probably including me) when often there are all kinds of alternatives.   

    0Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Malcolm Forney No, judge cannot do anything.
    0Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Malcolm Forney You can't do a quiet title claim...but you can sell it via Quit Claim Deed...two different things..
    0Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Bruce Lynn Sometimes you have to turn lemons into lemonade...馃榿
    0Reply
  • Malcolm Forney
    OP
    Member since 2019 路 5 posts 路 0 votes
    7y

    @Mark Fries I'm familiar with both. The reason I asked because the title company told me the only way I could get a clear title was to wait 4 years or file a quiet title claim

    0Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Malcolm Forney They are completely wrong.
    0Reply
  • Don KonipolBusiness Member
    Investor 路 The Woodlands TX / Avon, CT 路 Member since 2009 路 6k+ posts 路 10k+ votes
    7y

    @Malcolm Forney

    If the lien is a contractors, or mechanics lien then there is usually a limited time that the lien is in effect, if, it was put in place during a previous ownership. I鈥檒l assume the title company is on top of this and in your state (every state is different) you hav 4 years left. However, title companies advice is often bias and based on the events necessary for that particular title co feeling comfortable issuing title.

    This is one of those questions where the only answer posted in reference to your situation that you should follow is the one that states that you need the advice of a knowledgeable and experienced real estate attorney.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Malcolm Forney There is title companies that are squeaky clean and do every single thing by the book and then there is title companies that are kind of shady and will throw out a few options... You might find of one of these shady title companies to do a special warranty deed with an exclusion for the demolition lien and you might be able to sell it that way.
    0Reply
  • Malcolm Forney
    OP
    Member since 2019 路 5 posts 路 0 votes
    7y

    So I spoke to a few attorneys to pick their brains for free....lol and since its a lien from the county and the lot isn't worth that much my best bet is to sale it through a quit claim like @Mark Fries explained. Thanks guys!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    7y
    Originally posted by @Mark Fries:
    @Malcolm Forney

    There is title companies that are squeaky clean and do every single thing by the book and then there is title companies that are kind of shady and will throw out a few options... You might find of one of these shady title companies to do a special warranty deed with an exclusion for the demolition lien and you might be able to sell it that way.

     I would not characterize it by shady and not shady.. some title companies like all insurance companies take on different risk profiles.. that's all it is a risk profile..

    there is a company in CA that only sells tax deed title insurance.. its not very good insurance but for a buyer who is not knowledgeable they probably would not figure that out..  but most lenders wont loan with their lender policies.. 

    if its a municipal lien I like your thought process most can be bought off for pennies on the dollars.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Mark Fries
    Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
    7y
    @Jay Hinrichs Correct on the municipal liens! Homes that have tons of those racked up on them can be some of the best deals ever and I actually pursue them quite frequently... I think it was the beginning of 2017 or something...I bought a house with $14,000 of municipal liens for $4000 , now it's worth like 120k....lol
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    7y
    Originally posted by @Mark Fries:
    @Jay Hinrichs

    Correct on the municipal liens! Homes that have tons of those racked up on them can be some of the best deals ever and I actually pursue them quite frequently...

    I think it was the beginning of 2017 or something...I bought a house with $14,000 of municipal liens for $4000 , now it's worth like 120k....lol

     real estate is all about knowledge.. My Dads attorney back the day.. ( 60s) told me .. " son you want to make money in real estate you learn the courthouse"  which basically reefer's to all these kinds of deals.. understanding your tax sale laws.. foreclosure laws.. lien laws and right.. timber rights mineral rights  water rights..  ability to subdivide using shadow plats. on and on and on. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Malcolm Forney
    OP
    Member since 2019 路 5 posts 路 0 votes
    7y

    So I spoke to a few attorneys to pick their brains for free....lol and since its a lien from the county and the lot isn't worth that much my best bet is to sale it through a quit claim like @Mark Fries explained. Thanks guys!

    0Reply
  • Gina SternPro Member
    Investor 路 Boca Raton, FL 路 Member since 2019 路 1k+ posts 路 161 votes
    7y

    For what its worth I have bought a couple of Tax Deeds at Auction and was and am still under the impression that a Tax Deed Sale bought at Auction comes free of all encumbrances EXCEPT Federal & Municipal. I have been wrong in the past, but not often :)

    [email protected]561-430-2616
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free