Does Anyone Know Of A Title Insurance Company That Will Insure A Tax Deed?
In addition to the subject line question, I ask this:
If the former owner of a tax sale property is a Corporation, LLC, Partnership, etc. who is one supposed to serve notice to of the tax sale purchase (e.g. if the former owner is an LLC, do you need to advise each of the partners? the registered agent?)
Thanks!
(if this is CA) Their agent of service as published by the Sec. of State.
You can also serve the officer of the corp, and I bet the managing member of an LLC.
I B]believe[/B] I was told that Great American Title, out of CA will give title insurance but cost is around $1500 last time I heard. I think Info was given by Bill H out of another forum and I am trying to find the Info again to post it here. Will see what I can find.
http://www.taxtitleservices.com/services.aspx claims they will
I have one or two properties that I have had for about 5 years. I had heard the 10 year requirement but think after hunting season is over I might give it a try. If it works will post here.
tedo 101 received your phone number. If I think I will be in the area when you are passing through, I will give you a call and maybe we can get together for a bit. I guess Tanye is gonna get another bidder.
If the former owner of a tax sale property is a Corporation, LLC, Partnership, etc. who is one supposed to serve notice to of the tax sale purchase (e.g. if the former owner is an LLC, do you need to advise each of the partners? the registered agent?)
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[ Edited by JohnLocke on Date 08/20/2008 ]
Chances are the managing member of the LLC would serve notice of the tax sale purchase. Usually, when it comes to this type of sale, the partners in the LLC have already been notified, or know that it is pending. In addition to that, it could, but not likely depend on the actual LLC agreement.
Which state did the tax sale occur?
There is no such thing as a TAX DEED, they are all TAX LIENS. Depending on your state it may it will a either a tax lien state, or a tax deed state (when you get the deed outright, after the tax lien has been paid).
However, in most cases like in Philly they have a one year redemption period. And for pre-foreclosures it is about 8 months. A similar collegue of mine, encountered this situation, and was unable to obtain title insurance, until the redemption period cleared.
[ Edited by omicron3000 on Date 08/20/2008 ]
The question is not who serves (or in the alternative, mails “redemption deadline notice”), but rather, whom is served. If the defendant is an LLC, Corporation, etc., who does the plaintiff (the tax lien, deed, whatever purchaser) serve – every member of the LLC, the managing member of the LLC, the registered agent, each corporate shareholder, the majority holder, etc.? To whom is the “redemption deadline notice” to be mailed?
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On 2008-08-20 10:11, omicron3000 wrote:
Chances are the managing member of the LLC would serve notice of the tax sale purchase. Usually, when it comes to this type of sale, the partners in the LLC have already been notified, or know that it is pending. In addition to that, it could, but not likely depend on the actual LLC agreement.
Which state did the tax sale occur?
There is no such thing as a TAX DEED...
Sure there is – look at Missouri, Oklahoma, etc. Your tax lien blooms into a tax deed after the redemption period ends. Yeah, you’ll get a deed outright, but it won’t be a General Warranty Deed, it will literally be a “Tax Deed.” Consequently, and as it relates to your comment below, a tax deed is difficult to insure by a title company. In fact, most won’t insure them until 10 years after the redemption period has passed.
Not to change the subject but TAX DEEDS do exist in California.
I have been issued many by various counties, they all carry the header TAX DEED.
Howdy Haynesm,
I was speaking to the waiver of redemption period issue, not the surplus money issue. That quote was from Jay Nixon (Atty General) a few years back. The article centered on tax sale purchasers failing to give notice to former property owners prior to securing quit claim deeds. Hey, how was hunting season for you? I focused this year on raw land in north central MO.
tedo_101
Hunting was a “mix”. Maybe a little good but not as good as it has been in the past, least ways not for me. Most of the people attending had brought the bank with them. I was simply stunned by the prices they were paying. Of course some of the properties were bigger ticket items. 114 acres, 80 acres, a couple of 40 acre tracts, one day care with taxes of 22K due on it and the like. I’m used to paying $250 up to $1500 for things; a couple or three times I have splurged and went to $2500. I did manage to get about 22 properties this year, so now the waiting game is on. Maybe, as you mention, I could get a quit claim deed for some of the property.  Did you do any good? You mentioned north central MO. Now that the sale is over what county did you go to?
John Carter
Unless I am mistaken tax deeds do exist in Missouri also. We are, I believe, a dual state, having both tax liens and tax deeds. Tax liens are in most of the outlying state, St Louis (a class one county) has, I believe, both liens and deeds offered at different times and for different reasons. Now before anyone gets on to me I will admit I could be wrong. You know, there is always a first time for everything. Do your own due diligence
Tedo-101 I think 20 times the value of the back taxes may not be such a bad investment depending on if you are wanting, and get, the property. To each their own. One spot over here, about 18 acres, with spring river frontage, taxes were only $84.71 but sold for $3000. What is that, about 40 times the taxes but I still think it would be worthwhile IF you got the property. However, only getting 10% of the tax money $84 X .10 = not much for tying up your $3000 for a year.
Myself, I hope I get the property. The 10% isn’t much when you consider the small amount that is usually paid. If you get a big ticket item then it could be worth while. I went to Lawrence CO. half way between Joplin and Spfld. Taney county would have been an OK place to go but I stay away from Green county. They have more rules, regulation and problems than I need. Even some of the people in city government have cautioned me about buying in Green county.
Tedo-101
Let me see if I get this straight. You’re willing to tie up $3000 (for a year maybe) for a property that has taxes of $84 and if redeemed after one year you only get $8.40 interest. I thought (am sure) the statute reads that you get UP to 10% per year on the tax money only, not on any surplus you pay. Also remember, that is 10% per annum which relates to .08 % per month if I am correct on the math. Newton county, (city of Neosho) last year was only paying 6% interest. Collector there is the one that brought it to my attention of the UP to 10% part. You have to grill each collector in each county to really know what is go on in that particular county. Crash and burn is very easy to do in this game. If you do go to Jasper county, (Carthage) be advised that in years past there was a lot of mining done in the area and there are many properties that have lead hazards. Or so to my understanding. The east side of the county in more of a problem than the west side. Better check the properties out fairly good before buying. This is not a scare tactic to keep you away as I have not bought in the county yet, just friendly advice from what little I know. Two years ago they didn’t have much on line info but I understand they now have a fairly good system on line that lets you see a lot of info about the properties. I think they even have pictures of the properties or at least most of them. I know Green county does. Would like to visit in person if we ever get near each other.
Hello,
Have you or do you know of anyone whose brought tax liens in Alabama?