All Forum Posts by: Karen D. Schiano

@Jerry K.  Ok thanks, you've been doing this so I will go with what your lawyer does.  If he adds it in the letter, then that letter is also sent to the treasurer as per rules so they would know.  Just in case I'm going to enclose a separate letter. or maybe I should include it in the letter; there might be some rule that I have to copy all correspondence.    That's exactly when I wanted to contact them though, not before, to give an option.   One problem was I was seeing the redemption period over as when a judgment for deed (or not) is received because they can still redeem til then so there'd be no sense in contacting then as I'd own the property.   Nevertheless, I read all tax lien state statues and found nothing about not contacting, it is written as "you should know" to investors on the Navajo County website so I don't know that it is really a rule, but just a clarification that investors don't own the property  and are not to harass for payment.  But if that's what the county says, I'll go with that.   Thanks for all your help!

Here comes another issue as I am just getting into tax liens. I have an LLC in NM for general purposes which I have applied to register as a foreign LLC in AZ where I am purchasing tax liens, going into foreclosure now and then selling. I thought this would protect me from any suits or countersuits resulting from foreclosing and reselling properties which it would but it appears that in AZ an LLC must be represented by an attorney except in limited circumstances which do not appear to be representing the LLC as a sole member disregarded entity as I am nor an exception for foreclosing tax liens. I do not want to go the attorney route expense and find my way very well with legal matters, reseaching titles, etc and have represented myself well in auto accident suit as plaintiff and in other matters. So does anyone know is the definitive answer that if I bring the foreclosure complaint on a tax lien property as a sole member disregarded LLC, registered to operate in AZ, I must be represented by an attorney?

Then that brings the other matter, I added the name of the LLC to the certificate thinking I would sort out and put in my name the lands I want to keep as personal property and have the others to sell be property of the LLC when I bring the foreclosures. I purchased all out of my personal bank account so no problem did not use LLC funds. As per rules, I could have purchased them from personal account for the LLC but not the other way around. The main name on the certificate is my name because the counties require that it match if using my social security number which is the way the IRS wants as a sole member disregarded entity. So I am hoping no problems. I have to list the LLC because that's what's on the W-9 but I also have a sole proprietorship which hasn't been doing any business for years. I don't know if this has to be categorized as a sole proprietorship if not an LLC? I am extremely low volume and really consider them personal investments, some of which I will sell. Do individuals have investments and sell via internet real estate and it is individual income and not considered a business for tax purposes, but considered personal income? I guess I can check on turbo tax unless someone can tell me...... I'm going to ask them to strike the additional LLC on additional certificates but this first year batch has both names on it with individual name primary. Does anyone see a problem when I do the foreclosure? I can't have two accounts as per county rules because my LLC does not have an EIN so I was going to sort out ownership bring the foreclosures in either my individual name for the personal properties or the LLC depending upon my end intention but now I believe I need an attorney as an LLC soI won't use the LLC for these land investment purposes. I guess I can just tell the county the sole member (me) LLC is assigning the certificates to me the individual and give a formal letter if need be if not listing the LLC along with my name on the certificate will be an issue in court. Yeah, that's it, may have answered that question, but the other questions remain.....thanks.

@Jerry K.   Thank you so much.  Could you give me the statute please?  Because now there is a conflict. I called Apache County Treasurer and Dawn Yarosh yesterday who definitively told me I can contact them offering to purchase the property if they don't want to redeem rather than go to foreclosure, adding "It's public information".  You are saying the owner could sue me for offering to purchase, being upfront that they can still redeem but if they are not wanting to redeem or sell to someone else? Like sending the Intent to Foreclose letter and adding Offer to purchase on another page or sending each under separate cover?    Please send me the statute number.  

In the case of a deceased person I am working on I told the funeral home that I was seeking to find next of kin regarding property deceased has to serve foreclosure papers (and probably shouldn't have added or offer to purchase if they don't want to redeem) and they are going to ask the relative who made the funeral arrangements to call me.  I can't see why they would call me without me giving a reason  and the funeral home would have asked if I didn't volunteer the info and lying is out......there is no probate in the county Navajo where the land is nor the county Maricopa where he last lived and instructions say to find the heirs and also in the case of being unable to locate someone to attempt to talk to relatives.  No one is going to give me info unless I tell them why I am searching for the person and if I just say a legal matter alot of people would hide.

John Greer:  I have no idea how many are prosecuted but the way the county was sounding, pretty sure they would revoke my investor privileges if I broke rules....The idea to have a friend make the offer makes sense.  I thought of that and guess it would not break any rules but if the county is watching, they'll figure it out but I guess it's ok....In the future I plan on contacting owners before it goes to tax lien sale if it's a parcel I'm willing to pay more for then what I could get it for if foreclosure is imminent.  A parcel that I want to keep for myself.  A parcel I really wanted adjacent to a parcel I own went by tie to another investor so I'm planning on offering a little more for this remote inaccessible but spectacular property.  Only problem with that one is the owner is deceased so I will have to track down heirs and see if they can get title to it and then sell it to me.  It was a 0 per cent deal as I really wanted it and why the other investor wanted it I don't know, he isn't going to make anything if redeemed by heir and he either doesn't know it has no access and is all hills (but an artist like me's dream and I will climb over the hills to get to what parts I can for a remote retreat), or will just sell it without being honest about it to someone who says wow 40 acres for 4000. or 100. a month like so many do..............

Thanks so much for the answers.  I don't know how to respond to each individually so, Roman M.   So glad you know Arizona tax lien rules!   When you say not contact regarding payoff, I think that means that I can't contact asking THEM to payoff but are you saying can't contact them saying I'll pay off (absorb the delinquent taxes I've paid plus any outstanding from current year) plus offer  to purchase for $300. which around here most would take because they are just letting these remote lands go anyway with access problems, instead of using the $300. to file and foreclose and they get nothing? I would think those investors bought the property with the tax lien on it from the owner and then paid the tax lien off to the county which of course would come to you.  I'm not sure why they would go through you unless they were wanting to foreclose on it if it was ready or they wanted to wait and see?  I know the owners can still sell their property with the tax lien on it and the buyer take responsibility to pay it off.........unless the law is different elsewhere, they are still the owners and can sell it with the tax lien attached.  The buyer assumes responsibility to pay the taxes and if the buyer doesn't pay it, then in time it could go to foreclosure....  So I can't contact with an offer to purchase, it is considered contacting the landowner regarding payoff?  Thanks, I hope you'll answer...

Can't seem to figure how to respond to each.  You don't do a transaction with the deceased person, you have to find the heirs and that's what I am asking.  Ok so I actually have to check if probate opened in the county where he last lived I guess?  Thanks, that would be a different county in Arizona......It is rare to get title insurance out here.....many investors sell these lands by Special Warranty Deed and some with owner financing.  These are raw lands worth very little......But in the case of foreclosing on a tax lien, I will get a judgment deed from a court order.  This goes on all the time out here.  People buy the land many sight unseen, many internet sales, many out of state or even country because the land is so cheap and remarkably beautiful in the painted desert but so remote that only an artist like me wants to keep them all and have retreats for others too but I will sell some, upfront and disclosing....so when they realize or figure out it's not so romantic to them after all, unlike me, they stop paying taxes and let it go and the same lands get recycled over and over... 

Thanks for the answers!  Yes, I did find out that just the seller needs to notarize, thanks.  And as far as the Quit Claim Deed goes, because these are very low dollar tax lien properties and typically no title insurance.  Some are conveyed by Special Warranty Deed but Quit Claim is quick and easy and very often used when only a few hundred dollars is being passed here in Navajo county, Arizona......The ones I'm going to sell I plan on selling by Special Warranty Deed (some I'm keeping) like I see many big investors doing in this area.......

New to tax liens and about to ask owner if he will quit claim for a small price rather than foreclose and get nothing.  I'm reading that we both have to sign in the presence of a notary.  I live in another state but go to Arizona where the land is, but he lives many hours from the land.  Do we really have to sign together?  If we are able to sign separately, I don't know how it would work though except in person because they won't sign over without the money and I can't see sending money without the deed.  Anyone know how to do this?  Many land owners in the painted desert of Arizona are from other parts of the country and some from foreign countries, so how would I get a quit claim signed together with a notary?  There has got to be a way to do this but I read that docusign is not acceptable and anyway wouldn't even know then how to coordinate payment.......do I just have to go to foreclosure in those many cases?

I am about to foreclose on an Arizona tax lien where I know the owner is deceased.  I've found a few relatives.  I saw an obituary I didn't print and now can't find again, but I know the owner died.  He didn't have services by his request so I am guessing he might have been a hermit or estranged from family.   How can I find if he had a will and then would it not suffice to just contact the executor and serve them the papers?  Or do I need to contact each relative and serve papers on each of them?  That could get costly.  I am doing it all myself, they are low dollar lands in Navajo county.  If I can find the funeral home I'm guessing they could tell me who made arrangements.  Any recommendations how to proceed?  Thanks.

Hi, new to this and about to foreclose two tax liens in Navajo county raw land.  I saw here that an investor offers to purchase before she starts foreclosure to avoid going through the courts and nice that the owner at least gets something.  I asked Navajo county about that before seeing this  and I can't believe this is right.  They said I am not to contact the owner to purchase once I own a tax lien, only other people or even other competition investors can contact the owner.  I can contact other investor's owners to purchase but not my own tax lien owners.  This can't be right!!!!! I don't want to go through the hassle of foreclosing and I'd rather give the $218. filing fee to the owner if they will quit claim.  If someone else in Arizona is doing this, it has got to be OK.  I would think it is even higher ethics.  But to be ok toy buy out another investor's investment?  that seems shady if your competitor won a tax lien and now I go and contact the owner to buy.  Then the county said well, you can't say you own the tax lien.  Really?????  The wording on the website is that you don't have a right to be on the property or even talk to the owner.  I think the county is misinterpreting their own words.  I think this means you have no right to their land and to harass them or pressure them to pay.  But to offer to buy instead of them getting nothing?  And I can't believe I can't say I have the tax lien and am about to foreclose and would rather pay them then the courts if they aren't going to redeem and want to quit title.  So assuming it is OK and even nice for the owners if I do so, should I just call or send a letter or should I send it with the intent to foreclose?  I think I should send it before the intent to foreclose notice because that also gets filed with the treasurer.  Then they might tell me I did wrong.  Any advice, please?!!