Tax sale

[Rafael Nunez]

Hello George,

I purchased a tax lien at the sheriff's auction last month, and filed and recorded the sheriff's deed last week. Besides waiting for the redemption period to be up, when should I contact the Tax Title Services to certify property, please advise. Thank you.

[George Roddy, Jr.]

Rafael,

First, would you please reply back with the particulars of the purchase? For example, value of property, homestead or not, purchase price, occupied or vacant, rent-able condition or tear down.

I want everyone to see what kind of deal you got on the courthouse steps.


Secondly, congratulations!

The answer : I would wait until 2 weeks before the redemption period ends or better yet, the day after the redemption ends. You don't want to spend money for Title Services and then the owner redeems the property. In my opinion, you would be reimbursed for this expense.


Way to go!

George Roddy, Jr.
CEO/Partner/Investor

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[Rafael Nunez]

Thank you for your fast response. The tax lien was purchased for $25,000. The property is valued at $65,000 although the Dallas CAD has the market value listed at $50,000. The house is currently vacant and is listed as non-homestead. If I'm not mistaken there would be a 6 month wait from the time the Sheriff's Deed was filed and recorded. Would you advise to get property insurance during the wait? Please advise, thank you.

[George Roddy, Jr.]

Rafael,

Insurance?

Absolutely, this is a "cost" that you will get back if the owner redeems the property. Call Erik Reish with DFW Insurance to get a quote. His number is (972) 801-2580.

When I leave the auction steps, my first call is to Eric (insurance agent). Always get a binder on the property ASAP. You never know what can happen with your new property.


Good Luck,

George Roddy, Jr.
CEO/Partner/Investor

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Here at Roddy.com we offer support to a Texas investor in 3 specific ways:

* We show you how- Real-life real estate training from seasoned professional investors.
* We do it with you- We (you and I) partner on real estate deals. We split the profits!
* We do it for you- Our clients make double-digit annual returns! We do all the work, you reap the benefits!

Call our office if any of these interest you. 214-593-0074

[Mike Ripperger]

Do HOA liens survive a Tax foreclosure?

Will I have to deal w/ these after the sale?

Mike

[Steve Smegner]

Mike,
Subject to George correcting me - tax liens become senior. Lenders usually do not run escrow's to be nice. They do so to ensure that their asset is protected by an insurance policy and their lien does not become junior to a tax lien. I have sold properties with seller financing. Even though I do not escrow for the buyer, I have a clause in my note and security instrument that says that the note goes into default if they cancel the insurance or do not pay their taxes by the due date. I have a notice from the insurance company that says the buyer has a policy in force. If they cancel it or fail to renew the insurance company will mail me a notice. I check in January by going online to verify that the taxes have been paid.
It is my understanding that a tax foreclosure will be senior to all other liens except IRS liens. You can't escape the KGB I mean the IRS.