Posted by David Krulac on April 29, 2004 at 22:28:26:
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NEED HELP WITH A TAX DEED AUCTION - Posted by ag
Posted by ag on April 27, 2004 at 16:59:34:
I was wondering when purchasing a tax deed can I turn around and sell the property or do I need to get title insurance first? Im confused here.
Re: NEED HELP WITH A TAX DEED AUCTION - Posted by Bill H
Posted by Bill H on April 27, 2004 at 21:40:35:
AG:
First, most states do not give you a tax deed at the sale. Those that do give it to you with the condition that it is subject to the rights of redemption of the prior owner.
Second, if you purchased at the sale, are clear of the redemption period, have gone through quiet title proceedings, etc…then the property is yours and you can do with it as you wish.
Third, yes there is a title insurance company that will insure your ownership…they are not cheap but they will do it.
As David Krulac said…Investigate BEFORE you invest. If you plan to flip the property…you best be sure you have something worth flipping. Most are not…tax properties are by and large not worth very much. The thing you see on late night TV happen about as often as you or I hit the powerball lotto.
Tax sales are a good way to make high interest in a passive investment mode. However, in my opinion, they are not a good investment to try and obtain properties for pennies on the dollar as the guru’s state in their infomercials.
I have gotten lots of useless property that I simply do not take title to and let it go and write it off as a cost of doing business.
Good Luck,
Bill H
check with title insurance BEFORE - Posted by David Krulac
Posted by David Krulac on April 27, 2004 at 20:15:57:
you buy as many companies in many states will not issue title insurance on tax sale properties, so you could have bought something that can’t be financed or sold with institutional lending. Be careful, research before buying.
Re: NEED HELP WITH A TAX DEED AUCTION - Posted by KEN
Posted by KEN on April 27, 2004 at 20:09:43:
You should probably get title insurance for yourself but no you do not have to have title insurance to sell it but the buyer or their lender will probably require it
Re: NEED HELP WITH A TAX DEED AUCTION - Posted by Kristine-CA
Posted by Kristine-CA on April 28, 2004 at 02:08:26:
Bill: I’m curious about your statement that you’ve gotton lots of useless property that you do not take title to…are you speaking of tax lien certs?
I’ve never seen the late night infomercials for tax sale courses, but I’ve found tax sales to be very good deals. We’ve bought vacant parces and have had no problems selling them. Of course, you have to weed through a lot of junk, especially here in CA.
Also, since CA does not sell tax lien certs and there is no “right of redemption,” the good properties do make good deals. Sincerely, Kristine
Re: check with title insurance BEFORE - Posted by rehabber
Posted by rehabber on April 28, 2004 at 20:01:23:
Dave -
speaking of uninsurable titles…
Will title insurance underwriters write title insurance
for me if I buy a property at Sheriff Sale, clear of
all other liens/encumberances, BUT it still has an IRS
lien attached to it and the subsequent right of the IRS
to redeem it within 120 days. Will I get title
insurance right away or would I have to wait for IRS
redemption period to expire before I could get it?