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P.S. Recent Statute and U.S.C. changes affects you as a real estate investor. This is need to have information for tax deed investing, mortgage foreclosure and certificate investors.
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TaxDeedInvestingFAQ
great Site. very comprehensive. I have done lots of certificate buying and a few months ago bought and acquire property through a TaxDeed sale for my IRA. My question is, what happens to a Lis Pendens or Foreclosure/Mortgage if there is a Tax Deed sale PRIOR to a Foreclosure sale or with a 1st mortgage in position exactly. The girls over at the County ( Collier) didnt have a clue.....Many properties are now in foreclosure that also havent paid their prop taxes( big surprise)...Thx for your input.------------------------------

TaxDeedInvesting Answer
Sergio, thanks for the positive input for my site
Here's your answer: Mortgages are inferior to the issuance of the tax deed. In the process of the certificate holder making application for the tax deed, the pre tax deed auction protocal, requires that all parties be notified whom hold an interest in the property (that includes all mortgage holders as well);and,
the tax deed sale be advertised in a county newspaper of general circulation for four weeks; and,
a Tax Collector's Certificate be issued which lists all parties of interest in the property which will be verified prior to tax deed sale based upon an owners and encumbrance report performed by a title company the Clerk of Courts has contracted.

In short,
The mortgage holder by statute had ample opportunity to protect their asset and interest but failed to do so. Just because the mortgage is inferior does not mean that their interest is automatically negated. Mortgages are still on record and appear in the chain of title for the property. So, to make the interest null you have basically 2 options. 1. quiet title action OR hold the tax deed for 4 years unchallenged while paying the taxes and maintaining the property. I like to make it as simple as possible to understand so I typically tell people they are enjoined in ownership with all parties of interest until such time as 1 or 2 have happened. Until 4 yr expiration or favorable adjudgment an interest holder can come forward and challenge the tax deed issuance. I have had a few do this as an objection to a quiet title action. To date, they have all lost their interest and the tax deed was upheld. Hope this answers your question.
TaxDeedInvesting? Good information is Contagious, PASS IT ON!! James

TaxDeedInvesting Reader Response

It does I believe. I guess my only question is, what if there IS an objection during the Quiet Title period? What becomes of the objection? How long does that Quiet Title period last?

TaxDeedInvesting James Response
Sergio, Quiet title is not a period of time. It is a civil court action that usually takes us 6-10 weeks if self representing, depending upon court backlog. If attorney represented your quiet title action will take from 3-6 months.

In the process of quieting the title, all parties of interest are again notified and a court hearing will be set for hearing of any and all defenses. If a party does come forward at the hearing who has set forth there defense in writing to both Plaintiff and the court prior to the hearing, they can be heard. Typically if they have any sort of defense, the judge will grant them 30 days continuance you will have to schedule a new hearing. I have only had this happen a few times but all those bringing a defense have lost. If no party comes forward to be heard at the hearing and with your pleadings in order the judge will sign your Final Judgement and it will be sent down to recording. Once recorded, all those named as Defendants will forever be nullified though still appearing in the official county records.

If you so choose to NOT go the quiet title action route and hold the property for four years, at any time during that period, a party of interest could come forward to challenge your interest. If this happens you may have to conduct the quiet title action. Of the properties we are holding, we have never had a party come forward to challenge our interest. We have only had parties come forward when we contacted them through the courts to obtain a final judgment against them.

It is my belief that they come forward because they are afraid of us being granted more than the the property for which we were conveyed or of an award of damages-but that doesn't happen.

When a continuance is granted the judge will require the party bringing defense to record a "Motion For Elongation Of Time" along with the order for the judge to sign and a Certificate Of Service For Adverse Parties. Most people have no idea what this is or how it works, or how to do it and figure well I'll have to pay an attorney and it's just not worth it so they do nothing and upon the second hearing they don't respond nor appear. When a party has previously come forward the judge will typically have the case reviewed by the county attorney's office before signing, this typially adds about a week of time. When all is good and proper, judge signs Judgment and it is sent to recording.

FYI- I am not an attorney this information should not be construed as legal advise or counsel. As I am not an attorney, I can not offer information specific to your case nor can I review cases for an opinion.

Sorry about the length here, but I had an extra 5 minutes to spare.

FYI-We purchased a 1200sqft 2/1 in Beverly Hills, FL last month at the tax deed sale in Citrus County paid $15k and it needs less than 2k in repairs-we will be holding this one for the four years. Already have renter in waiting $650 per month. It's a good day.

TaxDeedInvesting? Good Information is Contagious, PASS IT ON!
James

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