Three Points to Consider in Hiring a Tax Lien Attorney

Finding the right attorney for your tax lien foreclosure or tax lien quiet title action is one of the most important steps to undertake after your initial tax lien or tax certificate investment.  The three most important factors I place when I’m looking for a new foreclosure or quiet title attorney are (1) experience, (2) efficiency and (3) pricing.

Experience

My first rule in hiring a lawyer – do not hire anyone that has never handled a tax lien foreclosure or tax lien quiet title. Period!  And, be careful with attorneys who have handled only a few cases or have only handled regular mortgage foreclosures and other real estate actions.  Tax lien investing is a niche market both for real estate investors as well as real estate attorneys.  There are many good attorneys out there that have handled hundreds if not thousands of tax lien legal actions and you should reach out to your fellow investors to find them.

Efficiency

My biggest annoyance with certain attorneys is the speed at which they handle my cases.  Speed makes a difference – every day they delay is adding to the taxes owed on the property, the chance of municipal fines or the possibility of vandalism on the property.  Ask your attorney (in writing) to spell out his or her estimate for completion.  Keep in mind, there are some delays that are out of their control – statutory, court delays, etc.  But, ordering title, filing the initial suit and responding to adversarial actions should all be taken care of right away.  If tax liens are not their primary business or if you only have a couple of foreclosures / quiet title actions, then watch out and be sure to keep in touch with them at every legal milestone until you are comfortable your case is a priority for them.

Pricing

For experienced tax lien attorneys, foreclosures and quiet titles are not difficult.  They often have numerous paralegals who handle 90% of the work.  Do not get suckered into paying large hourly legal fees.  Negotiate a flat fee arrangement.  I’d recommend setting up 3 -4 payments accruing at specific steps in the legal process: Initial title work and noticing, initial filing, prior to default or summary judgment, etc.  This way, if the property redeems early, you are not surprised by a late legal bill.  You can always go to an hourly rate if the case takes an unforeseen twist.   If your tax lien lawyer insists on an hourly rate, then have them give you an estimate (again, in writing) and make sure all legal bills are invoiced upon the property redeeming or before the cases closes.

Costs vary by state but tend to average $2,500 to $4,000 for a complete foreclosure or quiet title judgment.  You can even find attorneys who will do it for less than this if you have a lot of filings or if the process is non-judicial.