Big Question Re: Owner Occupancy For Tax Deed Purchase!
Hi!
I need soem help. My husband and I are considering the purchase of a home at a tax deed auction. We've done some research to find that the owners are still in the home. Should we win the auction what are our rights to remove the owners to live in it, sell, etc. assuming a clean title? If the home would retail for 180,000 and the bidding begins at $5,000, this just seem too good to be true...
Help!
Based on the research I've done so far it seems the rules vary by State and sometimes even the counties.
I've done the research because I'm getting ready to go to a tax certificate (as opposed to deed) auction.
My suggestions (I'm in no way shape or form an expert) are:
1) Do not contact the owners or any other interested party until you actually win the auction.
2) Contact the county Sheriff and inquire as to the procedures when you buy a tax deed. Ask for their assistance if you should acquire a property in this manner. In some locations the Sheriff removes the person occupying the structure.
3)Find a lawyer you can work with who is knowledgeable in this area and will not fleece you. You will likely have to go through a judical procedure to evict all persons and to obtain a "clean deed" with all previous deed encumbrances removed.
If you contact the homedweller before the correct legal route is followed you may be sued/fined for not following the correct procedures.
Basically make sure you have all your legal ducks in a row before you try to take possession....
If you are attending a tax certificate auction understand that you will NOT be purchasing the home but rather will be bidding on the rate of interest that your tax certificate will provide you during the redemption period afforded to the homeowner (in most states its 2 years). You won't have to worry about an eviction until the statutory period has expired. Up until such time you will be entitled to the face amount of the certificate (the tax owed) plus interest.
Thank you for your words of wisdom here. I actually live in Florida. I understand the differences in lien vs. deed. We will be attending the deed sale. I was wondering about the "after the deed" procedure, meaning any challenges with getting the owners out of the property or problems with the resale should we choose to go through a realtor to sell the property.
Quote:
On 2003-09-30 11:22, tieshia wrote:
Thank you for your words of wisdom here. I actually live in Florida. I understand the differences in lien vs. deed. We will be attending the deed sale. I was wondering about the "after the deed" procedure, meaning any challenges with getting the owners out of the property or problems with the resale should we choose to go through a realtor to sell the property.
Hi Tiesha,
I am not familiar with Florida procedures, but I did buy a house a Sheriff's sale in Pennsylvania that was owner occupied. I had a lawyer send them a 2 week move out notice, and they complied within 20 days (extra time for them to find a place to rent). So, I wouldn't worry much about them. Once you own a property, there must be a legal way to get anybody living in there (including former owners) out. Just factor in an extra $1,000 or so in costs of evicting them when considering how much you will bid.
[addsig]
Don't forget about the redemption period if your state has one. In Texas it is one year for a homestead. If you do any repairs to the property in that time you may not be able to get that money back. They, the owners now, will have to pay you back what you paid at the auction plus interest.
Have you checked for other liens on the property?
Yes, I did check for liens. We were actually going to get a title search completed before someone recommended that this might be a waste as most owners redeem right before the sale. When I contacted the county office, I was informed that the tax deed sale was a form of deed but one that would need to be upgraded if we wanted to sell the property right away. Know anything about this or the "upgrading" process. We were told this is done by an attorney.
Another question, any suggestions in what you have done when the property is in a gated community. How do you get access/ HOA information? Any problems with this?