I need Advice! Judicial Sale Purchase Gone Mad

[Lynn Taiel]

My husband and I purchased land at a Judicial Sale.  Now we get an attorney's letter from the previous owner stating they want the property back! Can they legally get their property back from us? We bought it fair and square right? Is there a loop hole we as newbies are unaware of?

[David Krulac]

 @Lynn Taiel

YES and NO.

The case will go to court if the attorney for the former owner feels that they can get it back.  It OFTEN happens, more times than you would think and as much as 50% of the time.

The requirements for a righteous sale have been legislated much more difficult over the years.

There are 3 notice requirements and if ANY of the 3 is deficient, it could be enough to set aside the tax sale.  In one recent Dauphin County tax sale lawsuit the sale was overturned because of a missing comma in the notice of sale. 

In another case the property was owned by husband and wife.  The wife signed for the notice, but testified under oath in court that she never told her husband.  Tax sale was overturned.

So while there is no redemption right in PA, the notice issue is the primary way to attack a tax sale and for attorneys knowledgeable on tax sales can easily overturn most cases.

There is a well known Pittsburgh attorney, who like myself wrote a book on tax sale.  I heard him say that he could overturn any tax sale.  The requirements of the law are so difficult that it is easy to overturn the sales.  And the judges for the most part don't like the idea of taking a persons property for a small amount of taxes owed.  The judges feel that the punishment is too severe.

There is a current case in Butler county where a widow lost a $200,000 for a tax bill of $6.30.  How do you think that's a judge is going to decide that case?

I've written extensively on Tax Sales including many times on Bigger Pockets,  Tax sales are the most hazardous way to buy real estate.  there are no seller disclosures, no home inspections, and are strictly buyer beware.  You probably know that any improvements that you make to the property, if the tax sale is set aside,  will NOT be re-imbursed to you by law.