Perfecting the title

[Sandy Uhlmann]

Was curious to find out if it is worth trying to contact the previous owner of a property lost in a tax lien sale in order to try to entice the previous owner to sign the deed over vs paying an attorney for a quiet title action?  This would essentially be a "cash for deed."  I know all states and counties are a little different but in MO, if the landowner doesn't pay their taxes after 3 years, the property goes to sale.  If purchased at the sale, I believe there still is a redemption period of about a year.  It seems to be it would be worth an attempt to contact the land owner and at least find out their intentions.  If they plan to redeem-great!  I get the price I paid plus some interest.  If they no longer want the property and have no intention to redeem, it seems to me like for a token amount of money, they might be willing to sign the deed over to me so I can get clear title/a warranty deed and can move onto sell or do whatever I want with the property without worrying about a redemption period.  Is this a viable option or not realistic at all?

On the same subject of perfecting title, has anyone used any company that helps you perfect the title so the property is saleable?

[John Underwood]

I would wait until after the redemption period ends and then contact the previous owner/s. That is typically the way I do it. Then I offer then a $200 or so for their time to sign a document clearing up the deed. They sign a QC deed that I prepare that had been previously blessed by my attorney. They are not signing over any interest in the property. A QC deed just means they are relinquishing any Claim to the property. Then if there was ano old mortgage I contacted the mortgage company and ask for a release. I have done this 3 times so far and the mortgage companies do it just for the asking. Then one property I wanted to be 100% sure everything was golden and I asked my attorney for a title insurance policy. They did a title search. Looked over the QC deeds I had (that I created myself) and the mortgage release and issued my a title insurance policy. No I can sell retail or get a cash out refinance for other real estate deals and keep renting the property.

If you ask previous owners to sign the property over they may get greedy or see a value and tell and sell there rights to someone for much more money. I prefer not to take that chance.