Most of the time when a person recieves a tax deed they will also receive title to a proeprty with a bunch of liens still tied to it. But wait, the county foreclosed on the property and I have the deed, doesn't that remove all of the liens!!!?? Not in most cases. If there are existing liens (mortgages, mechanics liens, etc) the county will not remove these and they will transfer with the property and be yours to remove from title. The county's tax deed is simply transfer of ownership only and not warranting a free and clear title.
Two ways to remove existing liens on title would be to negotiate with the lienholders to remove their liens or to pursue a court action called "quiet title". It is a judicial process where a judge oversees the proceedings. It can be expensive if it takes a long time to resolve or it could be quick and not very expensive. It depends on the court system and the lien holders as to how long and how much this will cost.
Why do you need to do this? You will not be able to sell the property to another party without title insurance. Title insurance can not be placed on a proeprty with preexisting liens against it.
I wanted to make sure this is known, as you will need to keep these costs and time frames in mind when you are buying tax deeds let alone pursuing tax lien certificates that you want to acquire as tax deeds.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Most of the time when a person recieves a tax deed they will also receive title to a proeprty with a bunch of liens still tied to it. But wait, the county foreclosed on the property and I have the deed, doesn't that remove all of the liens!!!?? Not in most cases. If there are existing liens (mortgages, mechanics liens, etc) the county will not remove these and they will transfer with the property and be yours to remove from title. The county's tax deed is simply transfer of ownership only and not warranting a free and clear title.
Two ways to remove existing liens on title would be to negotiate with the lienholders to remove their liens or to pursue a court action called "quiet title". It is a judicial process where a judge oversees the proceedings. It can be expensive if it takes a long time to resolve or it could be quick and not very expensive. It depends on the court system and the lien holders as to how long and how much this will cost.
Why do you need to do this? You will not be able to sell the property to another party without title insurance. Title insurance can not be placed on a proeprty with preexisting liens against it.
I wanted to make sure this is known, as you will need to keep these costs and time frames in mind when you are buying tax deeds let alone pursuing tax lien certificates that you want to acquire as tax deeds.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125