Help, do I have equitable title? my rights? - Posted by ScottSC

Posted by Bill Scott on November 04, 2000 at 19:46:07:

Wow Scott—this sounds like a law school final for property class! You really need to find a good, local Real Estate attorney that can unravel puzzles like this–but let me see if I can help:

The seller is the mortgage company----which means that they must have held a mortgage on the property. In turn, that means that this company should have had this mortgage recorded—such that when the Sheriffs sale for non-payment of back taxes was scheduled, this company should have been notifed–right? Usually these mortgage companies show up and bid the mortgage amount to take the property back. Did they do this?

However, you also say that a ‘tax bidder’ bought the property a year earlier? Hmmmm, did the county not clear the tax lien? Was this a Federal tax lien? Did this tax bidder not record title? In other words, how did the tax bidder do this without the mortgage company getting wind of this?

You do mention a ‘redemption’ period—that usually means a sale for property taxes occurred. Usually, the mortgagee has (depending on the state) six months to a year to redeem the property paying the back taxes and fees. So, do we now have a third party in addition to the tax bidder and the mortgage company?

There is a lot more information that you need in order to figure out what to do. With what I see so far, I wouldn’t bet on getting a clear title without an attorney and a quiet title action. Are you sure you couldn’t find a better deal with fewer headaches?

Just my two cents worth…

Help, do I have equitable title? my rights? - Posted by ScottSC

Posted by ScottSC on November 04, 2000 at 11:09:57:

I have a contract to buy a mobile home with land, the seller is a mortgage company. They paid the back taxes on the land but did not know the mobile had been sold year earlier in a tax sale. I placed the contract on the land and home before the redemption period ran out. Before we could close i checked the delinquent taxes and found this out. It just so happened that it was the last day of the redemption period. I imediately called the listing agent so he could call the seller that day. The seller does not want to put more money into the property. I have contacted the tax bidder he does not want to partner up on the deal but wants the seller to buy back the mobile for about 6500 his cost was 1200.

How can I still own the property I probably have a buyer already.

I could buy the land,not worth much with out the home, then try to buy the mobile from the tax bidder betting on the come that i could then gain clear title.

Re: Help, do I have equitable title? my rights? - Posted by Ron (SC)

Posted by Ron (SC) on November 05, 2000 at 14:52:55:

A few suggestions

  1. SC law requires that morgage holders get notification of tax liens certificates. If this mortgage company did not get a notice, a master-in-equity will overturn the sale. Under SC law, you still have a year protest period after the year redemption. I believe you’d win.

  2. If this is an “old” trailer, many SC counties will not let you move it. This is the case in Greenville and Anderson County.

  3. You might want to let the TLC holder know about points 1 and 2. These facts presented with the appropriate SC law and local ordinence citations might convince him to change his mind about partnering with you.

Good luck. E-mail ne if you’d like.