Nebraska, Tax Lien...I Want The Deed!
A few months ago, I searched the county treasurers online tax delinquency listing and came across a property with very low taxes on it. When speaking with the county treasurer, I found out that it was not taxes, but merely penaltys for their excemption (not filing in time, filing inproperly, ect..). The treasurer had paid two years of these and I bought the lien from them and paid the last of the penalties for this year. In our state, its 3 years of delinquent taxes, then one can aquire the deed if redemption is not made. The treasurer treats penalties as equally as back taxes. Because these were just penalties and not actual back taxes, I bought the last 3 years for just around $650.00. The redemption period has since expired as of August 27th of this year but it allows the owner to still redeem for 3 months from the time that I served notice of my intent to apply for deed. I spoke with several attorneys and it seems that none of them (real estate attorneys) know a darned thing about just applying for the tax deed vs. foreclosure. I cannot foreclose, simply because I do not have the funds to go and actually bid on a property with an assesed value of $300,000. (two properties on a large lot). This attorney just sent me a letter stating that he feels I should seek to foreclose even though I have told him I do not wish to. His reason for foreclosure is he states that it will be hard to get title insurance. I now have several questions, is the deed a title or does that have to be applied for afterward? And, if a tax deed is given, doesn't that clear the property of any liens that it may have had? Why would I need title insurance? I understand it protects you to anyone raising any question as to the legality, etc... Has anyone sought the deed without foreclosure? I don't understand the pro's and con's and it seems that any attoney whom does this same thing, forecloses. I know I am bouncing around on this, I just thought I had everythign figured out until I got the letter from the attorney.
P.S. The attorney wants the property This propertys eemed to be overlooked of any of its substantial value, since the fees on it were so small. I feel like I am being backed into a corner and the county attorney cannot offer up any legal advice but had said, this would be the route (just applying for deed) if I wanted the property.
deutsch1979--(NE)----------------
Seems to me that you acted before you studied. That is contrary to my advice. I advise you to get to the county law library and study the state statutes on collection of delinquent property taxes. Look for the "annotated" statutes. Also, ask the law librarians if there are any books on tax liens in NE.
Once you have read up on the topic you probably will be able to make the right choices.
Incidently, notice that the three month period is from the date that you notify the owner that you are going for a deed. If you have not already officially notified them, you will need to do that as an early step, I'd think.
Why don't you just send a courtsey letter to the owner(s) saying you have delinquent tax liens which will allow you to take over their property. Ask them if they would just deed it over to you, so that it is easier to do. Most likely outcome, in my opinion: they will hustle in and pay the taxes and the whole thing will be over. It is very rare for a property owner to lose a valuable property for a small amount of delinquent property taxes.
Good Investing***********Ron Starr*************
Good Investing*********Ron Starr************
i agree no one is going to loose a piece of prperty for 650.00 thats worth 300k unless they are dead.......
hmm.. did you check into that??
[addsig]
your attorney maybe right in regards to obtaining title insurance, thats why he is suggesting foreclosure...if you are planning in keeping the property then i would suggest getting the tax deed, and after 10 years you'd be able to get title insurance and sell. i would suggest that you search the record for any mortgages or liens that may have had priority over the taxes before throwing anymore money into this..always do your research first then go and play..
I hate to pour cold water on the parade here, but I too am a bit wary. I also believe that once you give notice, the homeowner will redeem and if you went through the lawyer to foreclose, you may wind up with more legal costs than is allowed on a redemption, and you may find yourself out of your money on the deal. So I would receommend that first you try to find out from the county how to apply for deed yourself. Even if you don't go through quiet title action, and you do not get title insurance, you can probably, if you can get deed, sell the property ona quit claim making sure to disclose to your potential buyers what is going on and the risks he/she may be inheriting from you as to the title being clear or not.
As a matter of tax lien basics, indeed if you do not get redeemed with interest and/or penalty, you will get deed, but in most states, you do not automatically get deed just because you were not redeemed during redemption period, but that you still have to foreclose the ability to redeem and during that period of time as you file that with the court, the intereswted parties can still redeem up until the time the judge rules, and you will still not get deed. And my understanding is that in Nebraska, you almost NEVER get deed, and especially ona nice piece of improved property. So, good luck! That does not mean that it cannot happen. Afterall some people do win the lottery too still!!
RC
Just a FYI, notice was given back in September. I took it a step further and did a public notice in paper too, for the 3 consecutive weeks. First step was to send a certified letter to address on record and IF that wasn't delivered, then you'd have to do public notice in the county that the land is situated on. The notice was stating when redemption was up and blah blah blah, and that I would be seeking deed to the properties on such and such a date if redemption wasn't made. They can redeem by law, up till the day the deed is given. I guess, its now or never. I will apply for deed on January 2nd and should have it within a week or two (is what CA said, IF I have done everything right). No redemption has been made yet, so, will cross my fingers.
WOW,
Good luck and keep us posted! You may have found a diamond in the rough! Keep your fingers crossed.