Texas Tax Deed Question
Hello fellow investorss. I have a question that hopefully can be awnsered.
I bought a property in Texas through a tax deed sale. The property has been vacant for over 7 years. The property owners have passed away (not in house) and therfore sold in tax sale. My question is, can I do a quiet title action to wipe out the 6 month redemption period (not a homestead)?
I am sure there will be no contesting the suit. I have done a title search of my own in the county and found one legal instrument recorded in 1967 (original deed) and some city liens that I will be paying off.
In addition, will anyone lend money (purchase and rehab) on a property such as the one I purchased if the property is paid off? I paid cash for the property
Yes, a quiet title in Texas is recommended if you plan on selling it. Otherwise, you own it. For residential property the redemption period is 30 months, not 6 months like suggested. Heirs may show up at any point.
Sounds good. Title co. said they would insure title after 6 months. I have a buyer looking to buy but not sure if I should sell without cleaning the title.
Redemption rule seem to very state-to-state.
There has been a thread around you might look for.
As a general rule, you have to foreclose a tax lien to gain title to the property. When there is a redemption period, you can not foreclose until the redemption period has expired and the lien has not been redeeded.
As the tax lien holder, you may also be required to give the defaulting property owner certain notifiations at specific times during the redemption period. Failure to follow the notification requirements could result in forfeiture of your right to foreclose your lien.
Tax liens can be foreclosed before the redemption period expires if the defaulting owner waives his redemption rights. It is a popular strategy to offer the defaulting owner some cash in exchange for his waiver of redemption rights. With the waiver in hand and your tax lien, you foreclose and petition the court for title to the property.
While this is just a general description of one tax lien strategy, you need to research your state laws to determine what courses of action are available to you.
NewKid is right on and it is done very often.
GA and FL you are expressly prohibited from contacting the owner. Ah but the states do vary
Hello and thank you for your reply.
I ABSOLUTELY would like to do more than one of these!
There are "transitional" housing facilities, for people in various kinds of rehab, domestic violance protection, etc. They can be expensive to manage. Hopefully, you will get money directly from the HUD. Make a list of associations in your area that support financially (pay all or part of the rent) for people that need such housing. They can then find you leads.
Start out by looking at post " Unclaimed Funds Tax Sale Overages(surplus) " of 8-20-09 here on this site. Go to the top of the page and in the search box type " Unclaimed Funds Tax Sale Overages(surplus) " then click search. That should get you there.
This info is for Missouri but I suspect it goes in other states as well. You would need to check it out.
Also you mention tax DEED and I am talking about tax LIEN certificates
If you buy a tax lien certificate and the original owner redeems then you, as the certificate purchaser, receive ALL monies you spent on the certificate plus whatever interest is offered. If you have had title search or other work done you may or may NOT get that money back. That all depends on the person selling the certificate at the sale. Here in MO some collectors give the title search money back to you and others do NOT give title search money back to you.
If you are talking about tax liens do NOT do any work on the property until the redemption period is over, else you have fixed the others guys house up for him. Thank you very much.
Will be unavailable to answer any questions for about 1.5 weeks. Hope you find what you want.