Tax Deed Sales Questions

[Carter Bushman]

What happens when you purchase a tax deed from the courthouse? Are these things usually bought in auction? If they are then does the government take the extra money over what is owed or does that go to the house owner? 

I also heard that buying the tax deed is not enough to own the house but you must also buy the title? I thought that was similar. 

I have also heard that once you have purchased the tax deed you should also negotiate with the house owner for the warranty deed. Is this necessary? 

Thank you very much for your help.

[Arnie Abramson]

Joe was correct .  It depends on the State.  In Texas, they are sold at an auction and there is one every month.  The excess proceeds are offered to those with an interest in the property that was foreclosed and if not claimed for two years the taxing entities get it.

Again, in Texas the deed you get at the auction is sufficient ownership-you acquire all the rights of the previous owner except the right of redemption.  You usually have to wait at least 2 years to get a title policy but it isn't necessary unless you wish to sell to a buyer who would request it or if financing is sought.

There is no negotiation necessary with the previous owner-you are the owner and the deed you get at the auction is sufficient.  You may need to negotiate with him if you wish to purchase his right of redemption and his right to contest the sale-just make sure you get all of those who had equitable interest not necessarily just the former owner.