All Forum Posts by: Reuben Gathright

SIDE NOTE / NOT AN ANSWER:  Any tax title property I own with a building structure on it and is apparently vacant, has at least one 8MP TASCO Game camera pointed at the house starting from the day I purchased tax title.  I use the recorded photographs to see if anyone is using the structure and as a way to notify them of their property tax obligations.  Modern surveillance technology has saved me on numerous occasions!

Walmart is selling these TASCO cameras for $28 in Sports and outdoors.

Here is a photo taken two years ago of a break in that triggered a connection with the owner of the property and due process notification of their unpaid tax liens.

Break In

Most tax sale auctions and tax liens take a higher priority in most states than the foreclosure itself but you should examine state and local laws first before proceeding.

If the property was in Louisiana then:

1) After visiting the property, taking multiple photos looking for activity on the land, asking neighbors where owner is and inspecting outside of building (from street) for condemnation damage, I decide to buy after my survey.

2) In Louisiana, I would buy the property at tax sale auction, bid as low as 20% and get my foot in the door with a tax title.

3) I would send a copy of my new tax title along with a Post Tax Sale notice to all lien holders on record in the Clerk of Courts for the Louisiana property as per RS 47:2156 with certified letter.

@Account Closed You wrote: (If there are a lot of liens on the title, it's better to let the property go to sale and buy it then, which clears up the liens.)

Please clarify, what type of sale in Texas clears up the liens?  

Would the same sale you are referencing also clear up IRS liens in Texas too?

@Jordan Clayson In these Louisiana tax deed cases, I locate the former owner and have them sign a relinquishment (created by your attorney) with a notary and two witnesses.  Locating the owner is somewhat easy using the power of Facebook and websites like InstantCheckmate.com to get their current city.  After you have found them, be willing to drive to their town and get a notary in the area who will help you with the document signatures.  I will often pay a signing fee to the person to convince them to do it.  Everyone wants a quick dollar and $500 in cash gets most people to sign.

Now, with that relinquishment from the former named owner, your attorney can contact his title insurance company and get you title insurance on the property.

BEFORE YOU START:  Ask an attorney if your mother get title insurance on her 50% share of the property?     Have the attorney do a title search and ensure the title company approves before you try to clear up your 50%.  In my part of Louisiana my most advanced title search cost me $600.  

I have bought over 50 tax liens in the past 6 years.  85% or better  redemption rate due to my own notification procedures 

Assuming this is Florida, I strongly encourage you to read your local state property tax lien laws because there is some good news that might apply in your situation.

What effect does a tax deed auction have on the primary mortgage lien holder’s interest in the Subject Property following a tax lien auction?

In the event the lender does not redeem by paying the delinquent taxes on the property, a tax lien auction will wipe out the mortgage lien pursuantto Florida law, in the absence of any act or omission which may give the mortgagee cause to successfully pursue a Quiet Title action. A lender whose interests are wiped out will likely, pursuant to Florida law, claim an interest in excess funds following the tax deed auction to the extent there is an excess remaining following distribution to governmental and other priority

SOURCE:  https://www.scribd.com/doc/35872761/FAQs-on-Florida-Tax-Deed-Sales

Additionally, you now also have proof of tax lien notice with the lender through your conversations with them.  Please take the time to record any emails or phone call logs with the debt collection agencies about this matter so that if you file a Quiet Title Action, those records can be submitted as due process notification.

Debt forgiveness of the property and attachment to the original owner is one of the main reasons I buy tax sale properties.  

@Jeff Manning At the county level, consider going to the source for this information which is the local courthouse clerk of courts where these records are stored.  Some courthouses have these records available online.  When a lien is brought up for legal proceedings, often the records are retrieved from the local county courthouse.  

When conducting title searches online, these companies are accessing the local courthouse records and offering them to the public.  However, the age and thus accuracy of these records offered by third parties online should always be questioned since their data is copied from the source.

Finally, there is another type of lien record which is not available at the county courthouse nor is it available online!  In fact this lien supersedes even tax sale liens and must be paid or negotiated!  The lien is an IRS tax lien!  You have to give the IRS due process notice of your tax lien purchase to start to insulate yourself from any possible issues.

@Account Closed

Questions For You:

1) Which county and state are you looking to buy a tax deed property in?

2) Has the county performed due diligence and issued title insurance on the tax deed they are selling you so that you can assure your lender you are buying a clear title for the money they loaned you?

3) In the county you are working, are you certain you have the right to enter and renovate the property immediately after purchase of the tax deed?

4)  What are you going to do if the tax deed property you wanted is bought by someone else at auction?

5)  Have you visited and confirmed that no one is living in the tax deed property you want to buy at auction?

Restoring tax sale lots in my Southwest Louisiana in person,  has given me a full buyers and sellers hot list.  Flipping is often helping a buyer or seller find qualified legal solutions to their real estate needs.  

Sellers appear when they see you on the ground working in their community.  Look up and go Talk with people who have tax lien issues.  You gain a lot of trust this way and can also get an idea of possibilities for a later deal.  

Be careful and consider a partner in high crime areas.  Ask yourself if the risk is too high for future investments?

I just did a follow up search and got a list of :

Foreclosures

Milwaukee County

For Your City Oak Creek, WI

http://racinecounty.maps.arcgis.com/apps/Viewer/index.html?appid=fe281b9881cd4327be4dc0752ba1c902

https://racinecounty.com/government/sheriff-s-office/support-services-division/sheriff-s-sales

https://racinecounty.com/government/county-treasurer/public-sale-of-properties-taken-in-tax-foreclosure