At present, it is extremely difficult to obtain title insurance on properties
obtained from defaulted tax liens without a court foreclosure action. In
certain jurisdictions, tax lien investors spend significant time and money
pursuing judicial quiet-title actions in order to obtain title insurance
on tax-deeded properties. Investors can experience direct economic benefits
in having a process that would eliminate the need for quiet-title actions
and the ability to obtain title insurance without such delay.
Tax Title Services has developed such a process that enables tax lien/deed
investors to obtain title insurance on their tax-deeded properties without
the need to file quiet title actions or to wait out statute of limitation
In order to get insurable title you have two choices. One is to hire
an attorney for a quiet title action whereby the court validates the tax
sale, or you can use our certification service which eliminates the quiet
title action in lieu of our review process.
Our Current Active States include IN, IL, WV, FL, SC, LA, MD, MS, CO,
MO, DC, CA, GA, MI, AR, OK, NY, ID, AL, AZ WA TX TN & MT. Other states can be added based
on your needs and the number of properties available for service.
Tax Title Services Process:
Once you obtain your tax deed or receipt
of purchase from the sale, you would fax us a copy with an attached Order
Form and check for $750 instructing us to begin. You can print a copy of
our Order Form on the following page. Our process is normally completed
within 45-60 days as long as there are no errors in the process that would
need to be cured. In the event that there will be curative delays, we will
advise you appropriately and begin the additional steps necessary to certify
your property. Please note that only a small percentage (usually less than
10%) of all files we review result in additional curative steps.
As far as the cost, we have a tiered schedule that takes into consideration the lower value properties (normally vacant land). Compared to the cost of a quiet title action and the time delay value associated with conducting a quiet title action, our fees are much cheaper. A quiet title action will cost you on average of $1,500-$3,000 plus hard costs as well as take 6-12 months to complete. Our certification service will cost you on an average of $750-$1,500 dollars plus hard costs depending on the property value and take 45-60 days on an average.
Our fees include $250 ($400 in CA and SC) for the insurable title search
and $350 for our examination and review. This insurable title search fee
is a hard cost, which you would incur anyway at your closing. It is not
only used for our certification process but is used for your policy issuance,
meaning you only pay for one title search with an update instead of paying
for one full search for the certification and another for the title policy
issuance or resale transaction
If your property can be certified, the certification fee is then invoiced
and due Net 30 from the day we complete our service. If you order is canceled
for any reason, the certification fee is waived in lieu of a $250 cancellation
If there is massive failure in the tax sale process and your property
cannot be certified or cured and a quiet title is required, then all you
pay is the review fee and title search fee with the insurable title search
then sent to your quiet title action attorney which he or she may utilize
to conduct the quiet title action. To date, for those files we have not
certified, we have either cured or obtained a buy-back or workout settlement
from an affected tax sale party for the tax deed holder, which is the same
result if you conducted a quiet title action but again faster & cheaper.
Upon the completion of our process and we are ready to issue our Foreclosure
Due Process Certification, we send you our review results with the invoice
advising you that your property is ready for title insurance without a quiet
title action. Upon payment of our invoice, we can obtain a title policy
from the title underwriter for you at that time.
When you have marketed the property and have a buyer under contract,
we will coordinate and send the original certification and insurable title
search to the title underwriter's direct local office or their title agent
closing office on your behalf and advise you of the contact information
for that office for you or your Realtor to deliver the original purchase
agreement and any earnest money deposit.
The following are just some of the results of utilizing our service:
- Save Time!! No attorney or court delays
- Save Money!! Our fees average half of what a quiet title would cost.
- Immediate Marketability, get your property listed shortly after your
tax deed purchase
We hope this helps. Again, if you would like for us to begin processing
your tax deeds, please let us know by contacting us directly and we'll help
you get started. Test us out in order to truly appreciate what this service
accomplishes for you.
If you have any questions or need further information, please let us
know. Thank you!