All Forum Posts by: Tyson Begly

I have the tax certificate for a house in Russell County.  The house is condemned and the city is going to demolish the condemned house in the next 6 months.  I won't be able to convert my tax certificate into a tax deed until 2026. I would pay the demo fee/lien so that I can convert to a tax deed. 

Once the city demolishes the existing house, is there a risk with building a new one before I get the tax deed?  If someone redeems, clearly the new house was all my investment, so I should be reimbursed.

Quote from @Scott Matthew C.:

Creative Private Money may be your best bet since no one has replied to your post in about 19 days. 

Also, can you clarify what exactly you want from a lender regarding the tax lien properties? 

Best of luck! 

Hi Scott, thanks for getting the ball rolling on my post. I was beginning to think it wouldn't get any responses.

So far, I've been using my personal money and a credit line based on my personal assets, which isn't very creative. When I talk to potential private lenders, they are more interested in being partners, which is not what I want.

From the lender, ideally I'm looking for a larger credit line.  My current credit line is just based on my personal assets rather than the cash flow from the business.  If a lender would consider the cash flow from the business, I think a larger credit line could be justified.

I'm trying to find lenders that specialize or are comfortable with tax lien investments.

I currently have 15 rentals homes that I acquired via tax liens. My current lender pays more attention to the traditional lending than the cash flow I'm generating.  I've been able to finance a couple of the homes that I've had for a while and obtained a quiet title, and I have a credit line based solely on my personal income and assets. However, I assume there are some lenders out there that understand tax liens.

I assume there are 2-3 lenders going to the NTLA conference in April, but that's a big trip for me just to meet a couple of lenders.

I've tried multiple times to get a response on an application to buy a property over the past few months.  I open a ticket to follow up, but they just mark it resolved.  It would be great if someone had a phone number to reach them.

I'm not sure yet. For now, I'm going to focus on the counties that haven't changed yet and then try to the new tax lien counties in a couple of years.

Sold!  Westcor Title Insurance stepped in and provided coverage. 

 @Ned Carey @Tai Bhattad

I filed the Quiet Title myself, but only after I've quieted a couple others using an attorney before, and took classes from @Denise Evans.  The judge even asked me a question about the paperwork that I would not have been prepared to answer had I not asked my attorney the same question on a previous motion.

To be clear, I have missed things in my title searches before.  Just because you hire an ad litem doesn't mean they are going to spend a lot of time on it. The title search company is going to do a full search regardless of a quiet title, and will not insure if they see something the quiet title didn't specifically address. 

The title insurance company did not care that I filed it myself.  They had two issues. The smaller issue was that it was a default judgement. They would rather see a defendant take action and lose, because they are afraid someone could argue they weren't probably notified in a default judgment.  To Denise's point, the quiet title should stand, but the title insurance company would still incur costs to defend. The major issue was that the tax deed was not 3 years old. Again, they may be able to argue the quiet title stands, but they would still have costs to defend.

As an update, I may have found an title insurance company willing to cover.  I'll update everyone if it goes through.

Hi everyone,

I had a new attorney speak to Fidelity National, and I've had a direct discussion with Mississippi Valley Title. The consistent feedback is that they used to provide coverage, but will no longer offer coverage if the tax deed is less than 3 years old, even if you have the quiet title.

@Denise Evans I know I've sold tax deeds that were less than 3 years old in the past, but I'm going nowhere with this one. Do you know specific contacts that will insure?  My attorney is being very flexible, but he doesn't know who else to contact.

Originally posted by @Denise Evans:

33 Alabama counties have switched to the new tax lien auction system, and 31 of those will have online auctions this Spring. Jefferson still doing certificate auctions, but I expect that to change in the 2022 auction season. Interest rates start at 12% and are bid down. No more overbids that give the advantage to the hedge funds. You pay just the taxes if you win, and you receive the winning interest rate plus principal if the property has been redeemed. No more possession, no more improvements, no more arguments about those things. Judicial foreclosure three years after you purchase the tax lien and it has not yet been redeemed. In that foreclosure lawsuit the owner has one last chance to redeem plus pay your legal fees, otherwise the judge gives you the property and quiets title in you

Hi Denise,

What happens if more than one person is willing to accept 0% interest?

What are the strategies to let you take possession?  Will there be classes available for this topic?  If ejectment is the only option, will those legal fees be reimbursable? 

Tyson

@Denise Evans I'm obviously going to agree with you because I get all my tax lien education from you. The local title service company said they couldn't do it because Fidelity National Title said no, and that is their only title insurance partner. They said they've closed similar deals in the past, so it seemed like a newer issue for Fidelity National Title.

@Bruce Lynn I asked them to shop around, but it's their only partner. I may just need to find another title service company.