All Forum Posts by: Michael D.

@Anthony Yannucci & @Patrick L. could you share with us what you do for due dilligence?

So far I've come up with:

1. Find a Tax deed that you're interested in.
2. Research the parcel ID for assessment price and land value
3. See if it matches the 70% rule (Assesed Dwelling Value ÷ Gross Assessed Value X 100
4. Check local bankruptcy court on property owners to see if they have filed for bankruptcy
5. See if property owners have any IRS tax liens (not sure how to look this one up yet)
6. Physically view the property (condition, neighborhood)
7. Check with local law enforcement to see if the house wasn't used as a drug house.

Anything else?

Perfecting !e Title

Upon successful foreclosure, the county will issue you a treasurer’s, sheri" ’s or tax deed to the property.
However, generally speaking, they do not convey good title. !is is because the county does not want to take
on the risks associated with a warranty deed. Mainly, that the grantor (i.e. the county) will protect the grantee
(i.e. the investor) against any and all claims to the property. Likewise, in order to sell the property, you need a
title that is free and clear of liens and title defects. Neither most buyers nor their lenders will take on the risks
associated with a doubtful title.
To get a good, or marketable, title you’ll want to have your lawyer initiate an action to quiet the title. !is is a

legal action that establishes your title to the real property against anyone and everyone and, e"ectively, “quiets”
any challenges or claims to the title.
Once you have foreclosed, #led a quiet title action and the court is convinced the title is yours, a quiet title
judgment will be granted which can be recorded and thus provide legal “good title.”
Next, you’ll want to apply for title insurance. In its simplest form, it guarantees that the owner has title to a
property and can legally transfer title to someone else. Should a problem arise, the title insurer (title company)
pays any and all legal damages. !e ability to obtain title insurance greatly enhances your ability to sell the
property. !e last thing a lender wants is a surprise lien threatening their interest in the property securing the
mortgage.
Congratulations! You’re the proud new owner of a property. Even better, you purchased this property for a
fraction of its true market value. Now you need to take a few moments to consider a few things. First of all, is
someone occupying your new property? If so, it would be a good idea to have them removed. Because each
state has varying laws governing the removal of occupants from your property, I recommend that you hire a
local attorney to help you with this.
In addition, it would be a good idea to secure liability, %ood and #re insurance. You never know what could
happen.