Tax Sale Guide Home
On The Risks Of Redeeming
Chapter: OTHER TAX SALE PROPERTY SALES
Gap
Yes, but so far in my experience, the municipality quickly gets the title stuff ready. I haven't had to wait longer than three weeks so far. That's not a year after you gain title as some people think, it's only for the time between the final tax sale and the title changing hands. And even if they do exert the rights under that court decision, some municipalities may not follow the policy. Informally, there are at least four municipalities that don't seem to even know about that.Â
However, in the worst scenario, I suppose that you could win the bid, wait a month or so to get it registered and the new owner comes forward, wants to pay and the municipality follows the policy of the decision (or knows about it - and we would have to assume the person knew about it, too), and you lose the property. The way I look at it, so what. I mean, these real estate experiences are extremely rewarding from the learning perspective. I haven't done anything without learning some valuable lessons. AND, you get your money back anyways. You would only be out of pocket your incidental expenses, which you can consider the cost of doing business (and certainly worth the financial pay-back you will make on one of the property you'll win big on...)
If you want to reduce your risk even further, you could, after your due diligence, (title search, etc.) check the internet for obits by typing in the name of the person enclosed in quotes, add a + sign, and quote the town name, this could bring up someone who died a few years before the tax sale - which likely means there's no emotional desire to preserve any property (estates aren't as emotional about their property, especially if the kids or executor's don't know the value, or can't see the potential value), nor are the as quickly aware of the tax sale as someone personally following it would be - giving you the time to get the deed registered.
I just really wanted people to understand that it's not quite the risk people think, in that original owners don't have a year to come back after the sale. It's incorrect information and could scare people away from potential financial freedom, or at least, a bit of financial ease for their families in exchange for a little part time work and a great new learning experience.