Real Estate Law
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Thanks for your question and good morning.
Tax liens sales have the risk that they are usually giving you only a tax deed.In other words they do not warrant good title and it is possible there are prior liens, judgments, etc that may cloud it.You are then responsible here for filing a suit to quiet title and that can involve a lot of lawyer fees and months of time.
This isn't always the case--you can use a local title company yourself to do a title run on any property you are considering purchasing.By doing due diligence you can know what you are purchasing.And if you get it cheap enough even a suit to quiet title here may make it worth it.The outcome of such a suit if the court awarding you clear title free of liens.
If you will go slow here, read about the properties and locate say a local title company that will do a run sheet, possibly attend some sales and meet some people and get information about the process in your area before you actually jump in you would do fine.You just need to proceed slowly and learn the tax sale business.
Also almost all counties have published terms of sale and these cover if there is any right to reclaim property under state and local law and also if you get a tax deed here rather than say a warranty deed .They also should set out how they go about doing a diligent search and notifying the lenders that might have liens on the property as well.
Again with some time on the front end to learn the business here you can find some great bargains.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.
Here is more reference on the subject and possible pitfalls.http://www.landforpennies.com/hparticles/5.php
Here is free club that are tax lien buyers that you can join and learn from and engage in discussion.This might be real helpful since you are new here.
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can we review the county record ourselves to see if any liens are applied to the property and would that be as good a a title co search.
Yes you can but you have to look at several things.First the deed records show the notes that are owed, the abstract of judgment records to see if they were sued here and there are judgments including IRS.If you do that you would have a good picture.The other problem with these problems is that you get a tax deed.You cannot say flip a house for full value with such a deed.With a suit to quiet title then the court awards you a clear title.Then it i s marketable like any other house.I point this out only if you are wanting to flip houses.It's only a long term problem if you are going to homestead it and stay awhile but just know that it is a potential resell problem.But if you take some time here and also learn your market to know what a true"deal" is you will be fine.And consider going to a sale or two and talk to buyers.You can learn a lot from them .They are usually willing to talk about their experiences and its free information.Remember overall you are trying to become an educated person knowing about the process, its limitations, and then the property research including the market.If you do that there are real bargains to be had.I have friends that do this for a living.They buy in , live in it and remodel it and flip very few years and avoid any capital gains because they occupy it.Thanks for letitng me help you.
thanks for your expertise, I appreciate it.
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