BUYING A OCCUPIED PROPERTY AT A TAX DEED SALE ... WHAT NEXT ?

6 Replies

Hi,

I am looking to buy a property for sale in a forthcoming Florida tax deed auction ( Manatee county ). I have bought several houses in Florida before at tax deed sales but they have all been unoccupied and I have taken possession that day after the sale and either requested a quiet title or waited 3 years for the title to become mine as no challenges to title were made.

The question I have is that the house I am looking to bid on at the tax deed auction is still occupied by the owners. 

The owners have been contesting a foreclosure for several years and this is still in effect.

If I am the highest bidder at the tax deed auction do I get immediate possession ?

Will the tax deed sale wipe out the mortgage ?

What strategies could I use if the owners refuse to move out ?

Note : I have considered using cash for keys in the first instance and failing that a quiet title search followed by an ejectment. 

Does anyone have any experience of carrying out an ejectment of the owners in Sarasota, Florida as to approximate costs and timescales if a ejectment is followed through.

Also do you have a good attorney that you can recommend to do this.

Many Thanks

Cathy

With a FL tax deed you are awarded immediate possession.  Cash for keys, or a straight up eviction.  A quiet title action isn't necessary for this.  If the lender was properly noticed, their mtg gets wiped.  If not, they can redeem by repaying you your purchase price, along with any necessary repairs.

Cathy,

I am a real estate litigation attorney working out of Sarasota and I represent parties purchasing tax deeds very frequently and on a statewide basis (10+ a month).  If you are the prevailing party at the tax deed sale, give me a call and I will describe the process for you.   For your bidding purposes, yes, the mortgages will be wiped away assuming the mortgagees were provided with notice of the sale in the manner provided for in the rules.  Best of luck in the auction.   

- Chris  (941) 361-1153

I think you may be using the wrong tool for the job. You will already have title so you don't need to "quiet" it unless you need to sell it with marketable title soon. An eviction is also not the correct tool because you have no lease or even assumed tenancy based upon performance (month to month payments). Instead you may need an ejectment which is similar to eviction just usually more expensive. You may also be able to use a form of writ similar to that used in foreclosures when the Sheriff serves a notice to vacate. 

@Laura Richards Uep, wrong term by me, ejectment.  Here it's usually quicker than the Writ Of Possession process usually used for mtg Foreclosures.

Thanks for all the information which I will bear in mind. I say this as the owner ( or possibly the bank ) just paid all the taxes owing today and stopped the tax deed auction sale taking place. The foreclosure I assume will now still go ahead. 

For any investors reading this post, note that IL is also a tax deed state. Tax deeds in IL wipe out prior interests in the property and convey "new and merchantable title." Moreover, the court that enters the order for tax deed will also enter the order for possession so there is no need to go to eviction court (called forcible entry & detainer court in IL). Tax sale and tax deed law in IL is my primary practice area. If anyone is interested in IL tax sales, feel free to contact me and/or use our website as a reference: www.flamm.com. Good luck out there.

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