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Angelic1111 · Oct 1, 2010, 01:06 PM

No - I wish - I wouldn't be so nervous :) - and it is a second floor unit so I can't see in it - I have talked to 2 people in the building who have seen it a couple of years ago - looks great from the outside - but boy have we been fooled before :)
The old say of "Don't judge a book by it's cover " is definitely true in real estate
Thanks for the encouragement Joy

sspye · Oct 9, 2010, 08:48 PM

Hello, I'll possibly be bidding in this same tax sale, but not on a condo ;). It's been interesting hearing the responses that you are getting. I'm quite a nervous ninny about bidding on these properties also. Most have mortgages that have not been discharged. Scares me to think that a mortgage company can put a lien on a property after I receive the Quit Claim Deed.

ScottGem · Oct 10, 2010, 06:23 AM

Originally Posted by sspye

Most have mortgages that have not been discharged. Scares me to think that a mortgage company can put a lien on a property after I receive the Quit Claim Deed.

This is unusual. Generally a mortgage holder will not let the taxes go delinquent to protect their interest.

Fr_Chuck · Oct 10, 2010, 06:41 AM

Yes, I will be honest I have never seen a real mortgage company let it go for taxes. They normally just pay the taxes and foreclose latter on the property.

While You will need to chek the specific state law, my understanding that only some specific liens get to stay, and they would have to have been filed prior to the sale, other tax liens, city and IRS for example.

Angelic1111 · Oct 10, 2010, 04:42 PM

Did you already send in your deposit??

sspye · Oct 10, 2010, 06:21 PM

Angelic, sorry I couldn't use the comment feature above. There must be a trick to getting the advertisement to close... sigh. Anyway, yes, I wired my deposit in on Friday. I suspect it will show in 'My B4A' sometime on Monday. Did you send yours in? I went to the Register of Deeds on Thursday, the clerks down there are exactly that... clerks. They don't understand the documents that they produce. For example, I asked why the county only gives Quit Claim Deeds and not Warranty Deeds, the clerk asked me what the difference was... I went downstairs to the Treasurer's office. The clerk there told me that if the mortgage company wanted to keep the property, they would have paid the taxes on it. I've been thinking about that over the weekend and am feeling pretty confident that the mortgage leins will be extinguished with the tax sale. Check out this website www dot waynecountylandrecords dot com If you know the name of the former owner of the condo, you should be able to do a title search there. If you don't have the name, check with the treasurer's office in the city that you are looking at your condo in, they should have a name for you.

ScottGem · Oct 10, 2010, 06:48 PM

You can't comment on a comment. That's another reason to only use the Answer options for follow-up

Fr_Chuck · Oct 10, 2010, 07:00 PM

Yes and clerks are just that, clerks, and not allowed to give out legal advice. A warranty deed is where the seller give the promise to first they own the property and will protect it against others making claim on the deed. A quitclaim deed has no promises. And the type of deed provided at a tax sale ( unless we have changed topics) are never warranty deeds, they have their own names, special deeds, sheriff deeds, tax deeds and other names. The tax department makes no claim other than it was done according to the laws of the state.

Thus why I almost never sell any of my tax properties with anything but quitclaim deeds also.

I may have told this story on here, I sent to Alabama to start a foreclosure on one of my properties there where I held a actual note, not a contract for deed. There was only one person in the entire court house that knew how to read the property maps to locate property. And of course they were out to lunch, and could not tell me "exactly" which lot was mine. And did not know how to look up old deed records to find some of my other older properties.
So don't expect a lot from the workers at the court house.

Angelic1111 · Oct 11, 2010, 10:30 AM

Thank you - I will remember that. HOA leins on a condo - the lien is on the condo or the previous owner - I have checked with the county on the condo ( nothing) do I also need to check on the previous owner ( being that the county owns the property

Angelic1111 · Oct 11, 2010, 10:32 AM

Ah - this is better - I am still trying to do due diligence - how many back tax purchases have you made and have you had any problems with them??
Thanks so much for your input

sspye · Oct 11, 2010, 08:42 PM

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Fr Chuck. You are absolutely correct that the clerks don't give out legal advice in the Register of Deeds office.. . and they post it all over the walls. :)

Indigo_Mgt · Oct 11, 2010, 11:09 PM

sspye you can reach me to, it's always good to have others to bounce things off regarding these tax sales

Indigo_Mgt · Oct 11, 2010, 11:13 PM

I can just about guarantee the HOA dues are a lien on the condo, especially if it's a nice relatively well managed condo and association. Have you tried to reach the previous owner?

Angelic1111 · Oct 12, 2010, 08:30 AM

Final update and I thank those that have helped me understand and complete my "due diligense."
A sencond check on an existing lien against the property has saved me from attempting to bid on this property and it is several times what I was willing to pay for the property.
This has been a good learning experience for me. I am not saying that I will never purchase a property like this - but I will
Surely reach out to all sources and do all my homework beforehand.

The answer explains why the first three winners of the bids, lost their deposits.
I thank you all for the information and I am off to find more properties. :)