Hello all! First post here and hoping to get some insight. This is a very informative forum to say the least.
Here's my issue -
My son and I have decided to get into the tax sale game after discovering a certain house we always liked is going up for an upset sale. To date we have already inspected the outside (and what we can see of the inside) as well had a title search done. This property is free and clear of any mortgages or liens other than the taxes. We'll be paying in all cash up to 35k - the tax lien is much lower than that as the starting bid.
The auction is coming up next week and I still have a few questions which I'll itemize.
1. Once the property is purchased where do we typically get title insurance to protect our investment before it's sold?
2. The county we're buying in has no redemption period. From what I understand once we bid and purchase the property is "ours". Being I live very close to this property I can verify it hasn't been occupied for at least 3 years which is considered vacant or abandoned if I read correctly. Can we go in once we win and pay at the auction?
3. What are the steps to get the actual deed? From research we have to get a quiet title done. Is it best doing this through a lawyer or is it something that can be done ourselves? How long does the process usually take?
Thank you in advance for your help!
Why do you need a quiet title action if the title search shows a clear title? Just asking for my personal info.
I bought a few auction properties in MS so two questions I can answer since I'm currently going through it. I bought my house and land through the state of MS which has helped me tremendously and I have a real estate attorney. The deed or land Patent comes from the state office like the chancellor clerks office after the auction is over, I'm not sure if you're doing the same thing.
1. Can you go into the property once purchased, usually you can but do have locks changed they want proof your the owner. In Mississippi they call it a land Patent or quit claim deed. Once that's received which can take up to 8 weeks then you can go in change the locks, turn on utilities etc. you can also call and confirm how long it will take with the office whose doing the auction.
2. Most of the time you'll need an attorney to do the title search and title change however most attorneys or if you know a title company who might do it for you wants that deed or land patent. It's a cost from $250-$500 depending on the state and my attorney had my title back to me in two weeks.
The insurance part I'm not sure because it's somewhat different in my state I'm investing. I hope this helped lol.
Thanks for the responses thus far..
What I'm being told is to get the actual deed we'll need to post notices in the local newspapers. Is this for proof for the court to issue us a title? It seems odd to have to do that since the house is vacant.
The county will issue a Deed, it can take 4 weeks to 3 months. Most title companies will want either a Quiet Title Action or a Quit claim Deed to issue title insurance. Quiet Titles are filed in the Court of common Pleas, and while you can technically do it yourself, there are procedures and local rules that have to be complied with. In one case the action was rejected because the margins on the filing were not according to regulations.
You get the Deed whether you do a QT or not, it comes automatically unless objections are filed by the owner.
A lot of what you have been told is just plain wrong.
Most attorneys don't deal with this kind of work, you need an attorney familar with Quiet Titles and Tax Sales.
Thank you for the response. I apologize if I'm out of line asking this but I learn better when things are itemized.
If we are able to purchase this property tomorrow what exactly are the steps we need to do after we pay the final cost and associated fees? I appreciate your help on this. Thank you.
Presuming you have reviewed the rules, done due diligence including title search and visited the property. After the sale if the property is vacant, I would secure the property with my lock, and post it as your property with your phone number. Then I would consult an attorney about starting a Quiet Title Action, unless you are not selling or not re-financing in which case, there may be no hurry to quiet the title. I have detailed many tax sale purchases right here on Bigger Pockets.
Thank you again for the input. I'm going to study the link you provided. I'm hoping we can pull this off tomorrow!