New Mexico Tax Deeds

8 Replies

Hello everyone! I am looking into purchasing tax deed here in southern New Mexico. I have read the state statutes (reading state statutes is boring i must say) that pertain to this and have a pretty good understanding of the process. I just have a few questions:

In NM there is no redeption period for previous owners, however when you purchase the tax deed all other mortgages, liens, and any other burden on the deed are not removed, so you end up with them. So I think much title research is needed.

My real question is inregards to the actual deed. It is transfered via a quitclaim deed. Anyone know what would have to be done for my to get a full title of the property with the quitclaim? I assume I would have to ensure there were no other interest in the property, but other than that I am not sure.

All comments/help are greatly appreicated!

-Martin

I'm not sure what you mean by quiet auction, if you wouldn't mind explaining that to me I would be very appreciative.

Also a quote from the Taxation & Revenue Department of NM:

Q: If a buyer purchases a property through tax sale, are all other existing liens against that property extinguished at that time?

A: A sale properly made under the provisions of Section 7-38-67 NMSA 1978 constitutes full payment of all delinquent taxes, penalties and interest that are a lien against the property at the time of sale, and the sale extinguishes this lien. No other liens are extinguished.

-Martin

If that is all true then WOW :shock: I don't know how they sell tax deeds with those kind of stipulations. I'm guessing this might be different from state to state, but in Texas quitclaims aren't recognized by title company as a valid transfer of ownership. They aren't worth the paper they're typed on. And taking the property subject to other liens? That sucks. I would find out if title companies there recognize quitclaims as valid, and then I guess you would need to search the title on every property.

It is definatly different from state to state, I think New Mexico is theo nly state that does it this way.

I will have to check with a title company as you suggested to see if they recognize a quit claim as an ownership transfer.

research is definatly going to be a must for each property.

I think that if proper research is conducted and I can verify that a full title can be obtained with the quit claim NM might not be a bad place to purchase because there may not be much competition at the auction due to the fact that most investors will run at first glance of the laws surrounding it.

Or maybe NM just sucks for RE investing and I will drive down to Texas and check that out. (I'm about 1.5 hours away from the border.)

-Martin

<<<If that is all true then WOW :shock: I don't know how they sell tax deeds with those kind of stipulations. I'm guessing this might be different from state to state, but in Texas quitclaims aren't recognized by title company as a valid transfer of ownership. They aren't worth the paper they're typed on. And taking the property subject to other liens? That sucks. I would find out if title companies there recognize quitclaims as valid, and then I guess you would need to search the title on every property.>>>

You can always sell property with stipulations, especially "as is".

Well the problem is that you would be taking over all other liens (and debts) and you wouldn't be able to get clear title unless those were cleared up. There are very few investors that will buy a property without title insurance.

Originally posted by Ryan Webber:
Well the problem is that you would be taking over all other liens (and debts) and you wouldn't be able to get clear title unless those were cleared up. There are very few investors that will buy a property without title insurance.

You're right that there's very few educated investors that will do so. There are a lot of uneducated investors that do. Check out ********** and other sites, they always sell w/o title insurance.

All prior liens will still be attached to the property after the tax deed auction. So if you must invest in New Mexico state you should do a full title search before you go to the auction and bid.

Also do a bankrupcty search to make sure thw owner has or hasn't filed.

If there are liens you will have to pay them as the "new owner". I'm not sure if you'll be able to "quite the title" in this case because the state statues says that the liens ride with the land/property.

I'd advise getting a lawyer that has specific knowledge about your state,
he or she may know how to legally cut a few corners for you.

Best,
Taxauctioninvestor