Anyone else could buy it and give it back to the owner after the redemption period…but the owner cannot buy it and give it back to himself.
If that were the case everyone in the country would let their taxes go to sale, buy their own liens and be free of mortages, etc…sounds good on paper though.
Who knows why the lenders have not moved to complete the foreclosure…that is their decision. They still have the right to step in and pay the taxes and protect their position…and might do so regardless of their prior actions.
My suggestion would be to contact the lender and offer them some low ball price and see what they say.
Given these new facts, the lack of lender attention, depressed neighborhood, etc…I’d say you best bet would be buy it direct from the lender. get clear title and do whatever you wish with it.
Bear in mind that any way you go the tax lien MUST be paid or it will come up at sale and anyone can bid on it. Nothing will clear the tax lien except cold hard cash. It is the most superior lien.
Posted by S Cleveland on August 01, 2006 at 21:47:40:
If a property has deliquent taxes, can the owner of the property buy his own tax certificate in order to supersede the real estate mortgage? If he can’t buy his own, can a friend or relative buy the tax certificate and then deed it back to he original owner? Also, what about using a trust to do this? The trust could buy the tax certificate, even though the beneficiary of the trust is the home owner. Would any of this work?
Glad to be of assistance. That is what this board if for…NOW…that you are on the right track…you said something that raises a red flag to me…that the property had two years back taxes and had been to sale and no one bought it…LOOK OUT!
I have found over the years that there is a reason why no one buys the tax leins…INVESTIGATE very carefully and as much as you can…FIND OUT why no one else is interested in the property…you are not the only person who knows about it…if the serious tax lien investors have already passed on the property then you need to find out why.
Could be an old crack house. a meth lab house, structual faults, land faults, local ordinances, lots of unseen problems could exist…you may well be after something that is not worth pursuing.
Good luck with it and please post your results here on the board for all to learn from.
Probably not…as to legalities…I ain’t no lawyer…and cannot speak to that.
Simply purchasing the tax lien DOES NOT convey title. You are merely loaning the taxing authority the money. You will NOT get title immediately.
The problem that will arise is that the tax lien will be sold to whomever…the redemption period will run…the mortgagee (lender) will step in at the last minute and redeem…initiate foreclosure for delinquent taxes…and the owner is still in the same boat…only now it is taking on water.
Posted by S Cleveland on August 02, 2006 at 18:33:08:
But here is the kicker. The mortgage company tried to foreclose before and at the last minute did a vacate of judgement. For the past 2 years, they haven’t received payments, nor have they tried to foreclose. It seems like they are asleep at the wheel. I’m not sure they’ll do anything about it. Oh, I might add, this house is in a depressed neighborhood and the loan is really more than what the property is worth. Does this change your answer?