Buying Property From A Municipality
I live in Virginia and ran into a property looking at assessment records that has been taken over by the city due to back taxes. The city has asked me to submit a bid to them if I wanted to buy it. My questions are:
1. How much should I bid? Based on what criteria?
2. What kind of deed should I expect to receive?
3. Would I be responsible for any lien attached to the property?
I would low ball the price, but not too low. A good deal, not a steal. By law, they may have to get FMV.
I would expect a grant deed or a warrenty deed
I would expect title insurance (and even pay for), and clear title.
! st of all can you afford to buy this property ?
The opening bid is the amount of the judgement plus fees. So if you are the only bidder and get the property at the opening bid, YES, you will be required to pay the taxes and penalties up until the current year, (in addition to your winning bid) to receive the deed.
Ok thanks.. Have to save a few more pennies then
So, do you pay the 2500 plus the 8700 to get the deed, I am just wondering
If I understand correctly, the opening bid will be the lowest amount to cover the judgement. Any accrued taxes will also need to be paid. For example, if the judgement is $2500 in 2000 and the opening bid is $2500, the winner will still pay the $8700 back taxes between 2000 and 2007 (using the above example).
JS.
Hi, I have done alot of tax deeds buying selling. You difinately want to do the quiet title, since no borrower will be able tot obtain a title policy w/ insurance until you do. Here is the best people in California to call:
http://www.taxtitleservices.com/
They are fast, and will give you all the info you need. Plus they are cheaper than a typical attorney since they do a large volume of quiet title suits. Oh and they will give you a title policy that transfers to new owner from Firtst American.
Hi again,
Florida has similar laws. The owner can file if there is proof of an error but typically this never happens and the owners have to front court costs etc to do this. A bankruptcy my have some bearing onthe sale, though I am not sure. Tax Deeds are really hard to find good information on. I learned by trial and error and reding the actual legal statutes. My suggestion is as soon as you buy the deed, start the Quiet title suit. Typically it can take up to 6 months. TaxTitle Service that recommended can sometimes handle it in 3 months. I wouldnt worry about the owners, unless they are on the property. Then you just have to have them removed by the sheriff and all that hassle.
ty eric youve been very helpful that certainly answers most of my questions.
goodluck on your future investment endevour