Ginger's Lack Of Service Answerby James Mikel
Did you perform a title search of the official records yourself prior to the auction? It is the tell all of who has interest in the property. Almost all counties have access to the official records from the Clerk of Courts Website, I believe there is still 2 counties which don't have it. If your county does not you will need to go into the Clerk Of Courts Office to research the official records. In all likelihood the owner is trying to cause grief where there is none. In nearly all cases where a mortgage has encumbered the property the lender has come forward and paid off the taxes prior to sale due to the fact that if they do not then their interest in the property will be nullified. Further, if the mortgage was issued between the time of Clerk's certification and tax deed issuance the lender would have required the taxes be paid as their title research would have cited the past due taxes. This is the standard for institutional lending. In conclusion, As part of the certification process for the Clerk's office an independent title company prepares an Owner's and Encumbrance report which can be found in the tax deed file. Of all the tax deed files I have researched I have only found fault with one, and the auction was postponed due to it. So, If you have searched the official records and found no mortgage, it doesn't exist. If it does exist and the bank was notified, then their interest in the property is nullified by auction and can be removed of record by quiet title or four year wait to obtain title insurance. If mortgage does exist and the bank was not properly notified, then you will likely wind up turning over the tax deed back to the clerk and getting your money back. FYI-If the mortgage does exist and lender not notified, I would proceed with the quiet title action and name them as a defendant. If they fail to respond then the quiet title will be granted and their interest in the property is void. If they do respond it gives you direct contact with the party with whom to negotiate. Truly though do not expect more than you paid for the property--I have fought this fight previously. If you choose to forgo the quiet title action, you have two options sit in waiting for 4 years and hope they don't cry foul and seek to get the tax deed overturned or contact the Clerk's office and inform them of the error in the Owners and Encumbrance report based on your finding a mortgage recorded prior to the Clerks Certification which is unsatisfied and party of non service. Make sure you have the book and page number of the mortgage as well as the names of Grantor/Grantee. If you do not find a mortgage or lien holder against the property and you already have contact with the previous owner, ask for a quit claim deed. As if the prior owner is the only named interest holder then you will not have to do the quiet title action. I have paid as much as $500 to a prior owner in this instance as it costs that much, at a minimum, to conduct a pro se action. If you are leary about conducting your own title research you can contact any title company and have an owners and encumbrance report generated--I was paying about $100 for it but it has been quite a long time and the price will vary depending on the county. FYI-I have a hub page for county resources in Florida. All counties official records can be found via map www.floridataxsale-foreclosure-info.com/CountyGovernmentAuctions_Florida.html
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