Tax Deed Case Study
Quiet Title Suit A quiet title suit legally hears all adverse claims to the property from various individuals, all claiming their right to the same parcel of land. To prevent a series of suits concerning the same issue, the court calls all interested parties together to determine “right” to the property, and to issue an injunction. A quiet title does not determine and resolve land conveyance problems, only legal claim to that land. Why do people let their property go to foreclosure because of back taxes? Someone who has never experienced severe hardships cannot imagine why anyone would just walk away from their property for the amount of back real estate taxes. I often hear people say, "Why would someone just let their property go for the back taxes?” I, too, find myself saying the same thing many times. Some reasons a property owner would let their property go to a tax foreclosure sale might include: -- the property was inherited, -- illness, -- job loss, -- job transfer, -- aging (property upkeep is too cumbersome), -- divorce, -- the assumed worthlessness of the property, -- they didn’t want to continue paying property taxes, or -- they didn’t know the taxes were delinquent Case Study Ginger attended a tax deed auction in mid-November. She bid on a 2.5-acre parcel of land whose assessed value was $76,000. The bidding started at $4,200, which included back taxes and interest. There were several other bidders at the beginning, but eventually, all but one of them quit bidding. Ginger promised herself she wouldn't pay more than $19,000 for the property, since that was 25% of the assessed value. But, the competitive bidder bid above that! Ginger decided to go an extra $1,700 but no more. She stopped bidding when her bid reached $20,700. To her surprise, her competitor did not raise the bid, and she got the property for $20,700! She paid the $20,700 to the county with money she received from an investor friend who was thrilled to be earning an annual 15%, and took title to the property. The following weekend, she drove to the property and installed a “FSBO” (For Sale By Owner) sign. That evening she got a call from someone asking the price of the property. She didn't mention a price because she knew the rule, “He/she who speaks first loses.” Instead, she asked what the caller was willing to pay. That's when the caller admitted that he was the other bidder at the auction. He told her he had to stop bidding because he ran out of cash. He offered Ginger $36,000 for the property, which she accepted. That quickly, she made $15,300. She paid her investor his 15% ($500.00), because it took the buyer two months to arrange financing. She pocketed the difference ($14,800) without spending out-of-pocket money! I believe that if she can do, you can do it too. What is stopping you from taking the next step? I pray that this post has helped someone. Until the next time Keep God 1st, Invest in People, CL Jones