All Forum Posts by: Davido Davido

@Lonell Slaughter, 1st thing to do is get a title report, or at least a preliminary title report for the property house so you know for sure who owned it and what if any loans, liens, or other encumbrances are on the property.  2nd Thing is to determine whether the owner (your Great Aunt?) had a will.  If there is a will, then the will controls who gets the house. (Lonell, you did mention there was not a 'living will' -probably you meant a will for her property, -a living willing controls what medical procedures she wants in the event she is alive but unable to direct her own healthcare)   If there is no will then your Great Aunt died 'intestate', or without a will.  In that case Ohio State law controls who inherits the house. https://codes.ohio.gov/ohio-re...  or https://www.nolo.com/legal-enc... .    In order for Ohio law to be properly applied, you'll need an accurate family tree.   Creating an accurate family tree would be the 3rd thing I'd do.  

Once you know the owner(s) and condition of the title, whether the owner had a will, who Ohio law declares should inherit the property, and what the owner's family tree is, then you can answer  "... who would inherit the house?" 

If the situation is as you believe it to be, then I would prepare a short one page Quit Claim Deed and ask each of your Great Aunt's siblings to sign it.  The Quit Claim did simply states that they are giving all their right in the house, if any, to you. If they  Quit Claim their interest in the property to you, then put the property through probate.   If they won't sign the quit claim, then I'd recommend that you simply treat the house as your own.  Move in or rent out the house like you own it.  If you assume control of the house, then they will probably do nothing and you can live there or collect rent.  You can ask them again to sign over their interest as often as you like.  In 21 years you can have a court award you title https://codes.ohio.gov/ohio-re... or https://www.nolo.com/legal-enc...

Thanks for posting.   Best wishes!

"It has a fantastic view. I wonder if I can find a nice young attorney couple to sell it to."   Nicely said.   Always good to keep a sense of humor.   And to look for a way.  There is always a way, there is always another way, and there is always a better way.

Hello @Annie Bass, 

You asked, 

"When you pay the past due taxes and show you’ve occupy the home how soon can you place a lien on the property?"

It is not as simple as paying past due property taxes on real estate and then filing a lien.  In order to have a valid lien for property taxes that you pay on real estate that you do not own, you will also need either an legally recognized equitable interest in the property or a title interest in it.  I am familiar only with the laws of my State, WA. https://www.biggerpockets.com/...  However, if you are using a property that Texas law would recognize as "Abandoned" by its owner,  then it is possible/likely that you could claim a legally recognized "Possessory Interest" just by being the first person to occupy the abandoned property.  Do be aware that abandoned has a specific meaning in law, -it requires an express or inferred "intent" by the owner to give up ALL their right to the property.  Legal abandonment is different than a property merely being in a such a state of decay that it looks abandoned.

Occupancy of an abandoned property is a type of Equitable interest in the property.   Possession is an equitable interest which the courts in most States will recognize as entitling you to recover property taxes that you pay.   If you have a legally recognized  right to possession then paying property taxes is necessary to preserve your right to possess that property.  I am not familiar with Texas law, but in my state, WA, even a squatter who has lived in a property for 30 days or more, has a legally recognized possessory interest in a property. Live a month on a property, even without the owner's permission, and most states suddenly recognizes you as a "Tenant".

A title interest can be any % of ownership in the property and can be obtained by almost any type of deed (Quit Claim, Warranty, Grant Deed, Bargain & Sale Deed) https://legaltalktexas.hammerl... For example, real estate is often abandoned by relatives when an owner dies.   However, if you can locate any relative of a deceased property owner, so long as the relative is in the line of inheritance described by your State's Law of Intestate Succession, https://statutes.capitol.texas... or https://www.stewart.com/conten...  , then you can acquire their interest via a Quit Claim or other deed and pay the property taxes as a partial owner of the property.  Your payment of property taxes, along with the reasonable and necessary costs of maintaining the property can be recovered from the other owner's -if they ever show up, and if you keep good records.

An equitable interest can be any pre-existing lien on the property. You can buy or bargain for an assignment of lien from anyone who already has a lien or mortgage on the property. They you would have their right to be paid the amount owed, and you can protect your right to be paid by that amount, by paying the property taxes as needed to keep the real estate out of property tax foreclosure.   You would then add the amount of taxes paid + interest to the lien you've acquired.   Just remember that if you do not have clear title to a property, then there is often an advantage to buying an assignment of an existing lien, instead of simply paying off the lien. Owning any percentage of a lien gives you a "legally cognizable interest" in the property.

Everything I've said above is general information.  It may not specifically apply to your situation under the laws of the State of Texas.

@Lynnette E., thank you for that helpful additional information.  In addition to paying taxes on a property for 5 years, a person who wants to claim ownership would also need to use the property as their own, and completely exclude the legitimate owner(s) from any use of the property.  Such instances are rare.   A different reason that counties have made it difficult for 3rd parties to pay the past due property taxes of another person, is that Counties get to keep the unclaimed proceeds of real estate is sold at their property tax foreclosure auction (all $ in excess of the taxes and foreclosure costs).  Allowing third parties to pay past due taxes would cost the Counties a lot of money because many times unconnected third parties would pay the past due taxes and thus remove the property from being sold.  Counties discovered that their Notices of impending Property Tax Foreclosure were being used by investors to identify abandoned real estate.   

I have some experience in doing just that. https://www.biggerpockets.com/...

@Lynnette E.,   It is true that some jurisdictions will not accept payment on past due property taxes from a non-owner.  This is particularly true after the County has filed its property class foreclosure suit.  However, if you own or can acquire a lien on the property that existed prior to the Property Tax Foreclosure filing, then the taxing jurisdiction must allow you to pay the past the past due taxes so that you can protect your lien.

@Annie Bass ,  A clouded title is one that is not clear.  Typically, it means that a Title Company is reading the history of ownership and sees something in the chain of title transfers that is too uncertain for them to insure.  Another word might be a disputed title -more than one party claiming right or partial right to the property.   But who has rights to the property can be unclear to a title company or court, even if there is no one is actively disputing the point.

If the daughter doesn't want to give you a Quit Claim deed for little or nothing down, then offer to partner with her or to share a portion of the proceeds when and if you're able to sell the house.   You two can also join forces to put the property through probate, but that would involve notifying the brothers and splitting the proceeds (and costs) with them.

Hello Tracy,  I am not a lawyer.   This is what I'd do.  1. Find out if the deceased mother left a will.  If she had a will it likely controls who is entitled to the property.  2. If there is no will, then then offer the daughter a small amount for her to give you a Quit Claim deed to the property.     A quit claim deed is a very simple, one page document that gives you all the daughters interest, IF ANY, in the property.    At this point the daughter has no title interest in the property, but she does have a legally recognized  'equitable' interest.   Meaning, if the property were litigated and sold she could claim some right to the proceeds.  The Quit Claim deed would give you both the daughter's equitable interest and a colorable claim to title.   Colorable meaning you don't have a perfected legal claim, but you have some claim.  

Then take over the property as though it were your own.    Pay up enough of the property taxes to keep it out of foreclosure, and rent the property at a reduced rate.  Advertise it as a fixer 'deal' at a reduced rent for someone with the skills to do required repairs.   Use only the rent paid by your renter to buy materials needed, so that your rent is paying for materials and your renting is providing the labor at no cost to you.    Restoring the property this way, and acquiring clear title, would be a long slow process.  

However, in less than 15 years you could quiet title in your name via the Virginia laws of adverse possession.   (Tack add the years that the daughter had it, onto the years that you occupied it).  Quieting title is often simple, as after so many years none of the family is likely to show up.   Doing this would cost you only property taxes, and you can recover the property taxes you've paid as a reasonable and necessary expense of preserving the property,  if one of the sons should suddenly show up and make a claim to the property.   If you can afford to wait. This can be much cheaper than buying at a property tax auction.   

Best wishes.   Davido     I've done this multiple times.  https://www.biggerpockets.com/...   

@Shelley Marko, "could (I) stop the tax lien sale by simply paying the taxes and taking possession of the property as squatters rights." ?

Yes.  Generally you can, however it depends on local laws.  Anyone who who already has a lien or mortgage on the property can protect their lien by paying the property taxes so that their lien does not get wiped out in the foreclosure auction.  However, some counties forbid anyone who is not a lien holder from paying past due property taxes of another person -if the attempt to pay comes after the county has filed its property tax foreclosure action. In my State, Washington, the publicly stated reason for such a law is that it prevents greedy investors from taking advantage of people who are under the stress of property tax foreclosure.

Your post omits mention of the jurisdiction in which this property is located.  

The counties know that often when real property is sold at auction, they will be able to keep the excess proceeds from the sale.  I believe that is the bigger reason for laws preventing someone from paying another's property taxes.  Your payment of your neighbor's past due property taxes prevents the county from profiting on the sale of the deceased person's property.

My recommendation is to immediately call or go to your county treasurer and ask to pay the past due property taxes on your neighbor's parcel.  You might mention that you are handling the taxes because your neighbor has not been well of late, but even if the County already knows the owner has passed, I wouldn't mention that the legal owner is deceased.  If you can pay, then tell the clerk you will get the money.   Before paying your neighbor's past due property taxes seek advice of an attorney regarding how you can make your payment of the neighbor's property taxes, a lien on the property so that you get paid back for the taxes you've paid -even if another investor or heir later makes a superior claim on the property.

If you can and do pay the past due taxes, then rent out the property.  There is no need to immediately seek title or even to fix it up yourself or do repairs -provided you're able to manage the work of others.  Just advertise it at a reduced rent to a handy person because the residence is in need of repair.  Reduce the rent and you'll have many more interested parties than you can accept. 

Be sure to let a prospective tenant know that you are not the legal owner.   Tell him/her that you have a acquired a beneficial interest in the property from your neighbor.  (You have possession of it.  That is a beneficial interest.) This is how I do it, every year.  https://www.biggerpockets.com/...

You are likely correct that the property would be bid up to near full value if you attempt to purchase it at the property tax foreclosure sale.   However, also be aware that once the local county has filed public notice of its intent to foreclose, many professional investors will check out every property in the list.  Such an investor who targets your neighbor's house will seek to acquire any existing lien or mortgage for pennies on the dollar and will then foreclose that lien in order to get it paid off in full, or own the property.  Also a professional investor can find a distant heir and acquire the partial interest of any heir, then use it to take over the property.  

Don't let what other's "Might Do" stop you.  Just be aware, that the quicker you act and make it appear to investors that the tax foreclosure is cancelled and you are in control, the better.  Once the County's Notice of Property Tax Foreclosure is publicly filed, you may find yourself competing with professional investor Sharks to wring profit from your neighbor's property.