Tax Deed auction in PA

[Jesse Kropf]

Hi, we have a tax deed auction coming up in PA, with over 1500 properties on it. I've been doing a lot of research and still have some questions for those who have done this before.

1) If a property has a long driveway and you can't see the house from the road, is it legal to drive up the driveway to the house? Would you drive in the driveway and turn around again, or talk to the property owner for any reason? I would like to at least see that the house is there and the roof is not caved in, etc. I can't imagine that the current occupant would be happy to talk to me about their property.

2) How do you research other liens that may be on the property, besides the tax lien?

3) If the occupant is still living there, how do you evict them?

4) How long do you need to wait in PA before you can quiet the title, and sell the property to a buyer with traditional financing?

5) Would you change the locks immediately? What if you can't tell if the home is currently occupied? How do you gain access to the house without the keys?

Thank you for any help, I appreciate it!

[Kevin Sobilo]

@Jesse Kropf, I'll try to answer as best I can but always get a professional opinion before taking actions.

1. No, it isn't legal to go onto a tax auction property. However, it is SUPER common to do so. Most of the properties are vacant and many times prospective buyers will try to even gain entry illegally. I'm not recommending any course of action just stating what actually happens.

2. It depends on which sale you are buying at. The Upset Sale includes liens and encumbrances. The Judicial (Free & Clear) Sale wipes MOST but not all liens and encumbrances away. This is why most people buy at the Judicial Sale. You can check at the courthouse for recorded mortgages etc, but there are liens that may not be possible to determine such as an unfiled mechanics lien.

There are also title issues that go beyond liens. Such as not notifying all interested parties about the sale properly. Another common issue is estate taxes. Many properties had owners who passed away and the estate taxes on the inheritance of the property was never paid. That needs to be rectified to have clear marketable title.

So, determining clear title isn't a DIY project in most cases although a savy investor can investigate a lot themselves. Its just too involved for even a good DIYer to handle 100% on their own. There will always be some risk involved.

3. My lawyer advocates this approach to eviction. Post a letter stating you have taken ownership of the property as of a certain date and that market rent of $XXX is due from that date forward. Then when they don't pay it, evict for nonpayment. Basically you make them your tenant and then evict for a simple reason.

The other way is just to do an "ejectment" which is basically like an eviction but for someone who isn't your tenant. I guess in a case like they the occupant can bring up a bunch of other issues. When you make them your tenant the only issue is not paying so it simplifies things.

4. You can start a quiet title immediately but it will take several months to complete. However, even after that many title companies won't insure the title until you have owned the property 1 or even 2 years. So, expect to wait at least 1 year.

5. If not occupied you change the locks AFTER you get the deed which in my county takes about 6 weeks. It isn't your property until a deed has been delivered to you. You likely need to break in whatever way does the least damage.