Philadelphia Tax Foreclosure Auction Time for receiving deed

[Agatha Oliveira]

Hello,

I was wondering if anyone has participated in the Philadelphia tax foreclosure auction recently and how long it has taken you to receive the deed? It has now been 3 months that the auction has been won and the deed has still not been issued. I have been waiting for that before entering the property, but concerned about doing that without the appropriate documents being issued. 

[Aziz Dali]

There are redemption period of 9 months in Philadelphia county

[Agatha Oliveira]

To my understanding, the deed should still be recorded before that as this happens as part of the recording process. This was also confirmed when I went there to submit the required documents, but they couldn't give me a proper timeline on when it would happen claiming that they were backed up. This is why I was looking for anecdotal notes. 

Additionally, the right of redemption only applies if the property was owner occupied during the 90 days prior to the sale and this is not the case here. 

[Stuart Udis]

@Agatha Oliveira Over the last 10 years case law has been established that greatly expands the ability to redeem tax sale properties. More frequently these tax sales are overturned on the grounds of failed or improper notice procedures. Even when the deed is recorded you will be unable to obtain title insurance for at least a year from the date the deed is recorded. It is ill advised to make any improvements until the property is insured and goes without saying the property is not financeable. The risks and delays are why many no longer pursue tax sale properties. 

[Agatha Oliveira]

@Stuart Udis Thanks, I understand the possibilities. I am not looking to make major improvements, but I am looking to enter and secure it. I just don't want to do that until the deed is recorded. Do you have any anecdotes on the timing for it to be recorded?

[Stuart Udis]

It's not uncommon to take a few months for the sheriff sale deeds to be recorded. All my peers and clients who previously bought tax sale properties moved away from the strategy a number of years ago so I don't have any recent experiences to go off of,  but wouldn't be surprised if the lead time is longer this time of year due to the holidays.