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    wuchia's Avatar
    wuchia Posts: 1, Reputation: 1
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    #1

    Sep 17, 2011, 07:48 PM
    If I bid on a tax deed forclosed to a bank, will I have a clear title?
    The auction is within two weeks, and the bank foreclosed the property a year ago.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #2

    Sep 18, 2011, 03:14 AM
    Probably NOT. Ask, do your research, do a title search, go to the deed office, or hire a title search company. These sales are fraught with problems.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Sep 18, 2011, 07:15 AM
    Who is conducting this auction? If the county is conducting it as a tax sale, it may be that the bank was not aware of the delinquent state of the taxes and will pay the taxes before the auction.

    Since the bank either has a lien or has transferred ownership via foreclosure, getting clear title would be an issue. If you do bid and win I would make payment contingent on getting clear and free title.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #4

    Sep 18, 2011, 07:21 AM
    ScottGem, the ones I've seen don't allow for such contingencies, or any at all.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #5

    Sep 18, 2011, 07:35 AM
    Quote Originally Posted by joypulv View Post
    ScottGem, the ones I've seen don't allow for such contingencies, or any at all.
    If they don't, then the OP shouldn't pay.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #6

    Sep 18, 2011, 10:19 AM
    Any bank liens are cleared at the sale for propety taxes, if this is a auction at the court house steps.

    BUT it is not a clear title yet, each state has its own rules, in many states, you will get a tax certificate which you hold for one to three years, after that you can turn it in for a deed. But the prior owner ( in this case the bank) has the right to redeem it during that time.

    In other states you will still get a deed, but the past owner will still have right to redeem for either several months to a year.

    A bank will not allow normally a property to be sold for taxes, it is very very common for the banks or lenders to pay the taxes the day before or the day of the sale.

    On tax sales only about 10 to 20 percent of the homes listed ever actually sell at the auction, most have taxes paid before the actual sale date.
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