Tax deed sales - Posted by Julia

import · January 10, 2003, 10:43am

Posted by JT-IN on January 10, 2003 at 20:48:33:

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import · January 10, 2003, 10:43am

Posted by Julia on January 10, 2003 at 11:43:01:

Hi, does anyone have experience with tax deed sales?
I did some research in my county and found the listing going on the next auction with houses bids in the range of 1500 - 5000 dollars. But it also says there that I’m not getting a “marketable title”.
What does that mean? Is it related to the mortgages on the house that have to be paid, or other liens?

Please, if anyone had actually bought a house on a county tax deed sale, expalin how it works.

Thanks!

import · January 10, 2003, 5:34pm

Re: Tax deed sales - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on January 10, 2003 at 18:34:45:

Julia–(FL)--------

I recommend that you read the state law on collection of delinquent taxes. Know what is going on before you start putting out your money.

FL has a unique tax sales system. There are the sale of the liens at a public auction. Should the property not be redeemed, the holder of the lien has to apply for a deed auction. The property is then auctioned off at a public bid auction, the successful bidders getting deeds to the properties, the lien holder getting paid off the money invested plus the return, wich is usually 18% a year.

You do not indicate what stage you are looking: the sale of the liens or the sale of the deeds.

In some places it is not possible to get a title insurance on properties which have been sold at tax sales. If you are going to buy with the idea of holding for long-terms rentals, as I do, you do not have to worry about the title insurance issue. Sometimes the title companies will issue insurance after a long time of your owning the property, such as 5 years, 10 years, 15 years. Talk to title insurance companies about their policies where you are. The companies may have different policies.

Good InvestingRon Starr*****

import · January 10, 2003, 5:27pm

Re: Tax deed sales - Posted by JT-IN

Posted by JT-IN on January 10, 2003 at 18:27:11:

Julia:

There are differences between a “Tax Deed Sale” and a “Tax Certificate Sale”. Most states sell Tax Certs, which the buyer of the Lien Certificate actually buys the County’s lien on the owners property. Many folks invest in these due to the fact that they pay a high rate of interest, (12 to 24%, varies by state), and most of the owners do redeem within the year allotted… (this time also varies by state).

Some states allow both, Tax Deed Sales and Tax Cert Sales. In a Tax Deed Sale, which is strikingly similar to a mortgage foreclosure, you actually get the property along with an unencumbered deed when the process is completed. I have bought several of these and turned around and sold them in fairly short order… with no need to get a quiet title action at all. These were in Ohio, which happens to be on of those states that offers both Tax Deeds and Tax Certs, at the option of the County Treasurer.

It sounds as if you are describing a Tax Lien Certificate sale. When you buy those you really only have a 1st lien on the property, and if the owner does not redeem (pay the taxes within a year), then you can foreclose or request a quiet title action, depending upon the state’s proceedure.

Hope this helps…

Just the way that I view things…

JT-IN

import · January 10, 2003, 11:38am

Re: Tax deed sales - Posted by SuperCat (IL, KY)

Posted by SuperCat (IL, KY) on January 10, 2003 at 12:38:37:

It depends on your state, but the following may apply.
Sale is subject to the previous owner’s right of redemption for 30 days or up to two years.
Quiet Title action is required before you could sell to someone with title insurance.

import · January 10, 2003, 5:44pm

How to get info? - Posted by randyOH

Posted by randyOH on January 10, 2003 at 18:44:40:

Hi JT,
Could you point me in the right direction for getting info on this stuff in my county: Tuscarawas County, OH? Should I call the treasurer’s office? Auditor?
Any help apprecated.
Thanks,
Randy

import · January 10, 2003, 12:00pm

Re: Tax deed sales - Posted by Julia

Posted by Julia on January 10, 2003 at 13:00:38:

Thanks!
I’m in Florida.
what’s Quiet Title action?

import · January 10, 2003, 10:20pm

Re: How to get info? - Posted by Nile Ohio

Posted by Nile Ohio on January 10, 2003 at 23:20:47:

Hi Randy,
I’m in Harrison County. I have a bit of info i’ve found in the last few days. Email me and I’ll share what I have so far. I’m new at this to but learning everyday.

Nile