All Forum Posts by: Reuben Gathright

Your best bet is to first read the state constitution in regards to tax sales.  

Before making repairs to a property before the redemption period is up, check to see if you can be refunded for the repairs by the tax debtor.  Each state is different in these regards and a wise investor should read as much as they can on the internet and consult a lawyer before doing so.

An understanding of the world from the view of the tax debtor helps tremendously as well.  The debtor often has no clue that you can take their property.  The reaction of a debtor to finding someone on their land will be precisely the same you or I would have.  

Pay close attention to notification of tax debtor and keep those records as they can help with future title issues such as quieting a title.

From my own experience not in Texas but Louisiana, I only buy vacant land in Louisiana because it requires no maintenance of habitable dwellings.  Land in Louisiana bought at tax sale also carries full mineral right ownership (assuming no drilling in past ten years by former owner).  Another benefit is that my yearly property taxes are very low and I am able to flip these properties for a much higher rate of return.  

Good luck!

Anyone notice that

@Patrick Fraire

has made no replies yet?

Just because someone has two children does not obligate you to ignore credit and job security issues.  

If having children allowed me to get free room and board then I would have numerous children long ago.

Have you looked at how much this tax deed investor paid for the 2 houses at the sale?

Reason for my inquiry is simple, it should motivate you to just buy at tax sale.  

HINT:  Land is easier to hold for tax investing then flip and reduces your risk of home repair / damage.

@johnatan Williams Please check that a Quiet Title ruling is recognized as eligible for title insurance by filing a request prior to court hearing.  A group of Louisiana lawyers charged with advising title insurance companies has strict requirements for prior and post tax sale notices involving confirmation signatures from all  potential heirs.

A relinquishment from all living heirs is currently one of the only ways to get a clear and formal title.  In fact a judge would likely rule on a quiet title without need for a hearing because that is seen as eliminating the named defendants.

I invest in Tax Titles and Tax Deeds in Calcasieu Parish.  

My first questions for any new investor are:

Do you have a relinquishment plan?

What do you want to do with the property?

My network usually discusses via email but happy to help.

@David Tubesing 

ASSUMING YOU ARE THE TAX DEBTOR: Just because someone owns the tax lien to your home, does not give them the right to perform repairs and then charge you for those repairs as part of the redemption of the tax lien.  The tax lien owner could abuse their right and overcharge or make unnecessary repairs.    

The core legal principle to know is that the delinquent tax debtor has the right to live on the property until your tax lien matures.   Leave them alone once due process notification of the tax debtor has been completed and the redemption period has not expired.  Now, you should contact local government and request regular mowing of the property if it is overgrown.  Those costs are added to the tax lien and follow a notification process as well.

REFERENCE:

How Long You Get to Redeem After a Tax Lien Sale in Alabama

In Alabama, you can generally get your home back after a tax sale by redeeming it within three years of the sale date (Ala. Code § 40-10-120). (An owner who retains possession may redeem without a time limit.) (Ala. Code § 40-10-82).

SOURCE: https://www.nolo.com/legal-encyclopedia/getting-yo...

@Anatasia Jordan,

I have been watching your activity here for at least a year and many posts on these forums warn about refurbishing tax lien property before the redemption period has expired.  You were given due process warning by us!

Let everyone here use this as an example for your own tax lien / tax title investments!

The Gulf Coast region of the US is a warm humid place which wreaks havoc on neglected homes.  The urge to renovate these homes prior to tax lien maturity is strong but you just cannot legally do this and have any form of protections.  While the OP here is going to sue, we all deep down know that civil suit will be very costly and time consuming. 

LESSONS:

1) Don't renovate these properties until you have a mature tax deed or a quiet title judgment

2) Consider the cost of demolition vs. renovation for these properties.  Often the land is still worth more than we paid in taxes.

3) Always assumed you are being watched by the former owners of any tax lien property.  

4) While likely not applicable to OP situation, entering an unmatured tax lien property in some states is viewed as trespassing under the law since former owners still hold rights to the land.  As a result, the owners have the right to defend their property as allowed by law!  Watch your back folks before becoming cavalier like OP has!

I hope that attorney is being used to get the title corrected.

Tax sales seek repayment of past due property taxes.  

In many states, you simply have to visit the tax collector and pay those taxes.  In fact, some states allow anyone to pay the property taxes on land which is very helpful for situations like this one!

This is the first time I have ever heard of getting an attorney to pay off your back taxes.  

Now that you have the former owner, have you considered taking them to the county tax collector to pay the taxes?