InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Your slim chance is being the highest bidder at the tax lien sale... Posted by Ward-CA- on January 29, 2004 at 10:44 PM In Reply to: tax foreclsure and bank in bankruptcy... posted by Stu on January 29, 2004 at 4:16 PM : Ward, : So I may purchase the tax sale foreslosure action currently in-process on a house that I, by chance, have put a contract on. I found out about the tax sale forclosure proceeding today after running a title search which I needed to do to buy the home. : The problem is that the bank that is on record of owning the 1st Trust started bankruptcy proceedings in 1999 and they are still going on. Is the bank then protected from me taking the property and clearing the title through a tax sale foreclosure? : Also, the bank itself has no record of the mortgage, there is no record of the mortgage with MERS, and a title search comes up with nothing current. I want to do the tax sale forclosure because it would then be a way I could clear the title and make it "marketable." : Is there a way to still forclose on the property? : Is there a way I could buy the house with my own money and move in and then do a "quiet title action" from the couch inside in front of the fireplace? DO you have any other ideas? : This is my first house, and the help you have given me so far has been great. Thanks so much! : Stu ============== Stu, A bankruptcy petition stops any creditor action that would adversely affect the petitioner, until such time that the creditor was granted relief from the automatic stay of bankruptcy. Since the bank has been in bankruptcy for 5 years I’m going to assume that the county tax collector has since received their relief from automatic stay and are plowing ahead with their tax lien sale. Property taxes are the most senior lien on real property. So the title to the property would be free of all liens, including the 1st, after the tax lien sale. However you have no assurance that you will be the winning bidder at the sale. Wiping the 1st off the title of the property is what you need. And the only senior lien that can do that is the property tax sale. Again, a “quiet title action” won’t do you any good in this instance. And buying the house from the owner won’t advance your cause. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : So I may purchase the tax sale foreslosure action currently in-process on a house that I, by chance, have put a contract on. I found out about the tax sale forclosure proceeding today after running a title search which I needed to do to buy the home. : : The problem is that the bank that is on record of owning the 1st Trust started bankruptcy proceedings in 1999 and they are still going on. Is the bank then protected from me taking the property and clearing the title through a tax sale foreclosure? : : Also, the bank itself has no record of the mortgage, there is no record of the mortgage with MERS, and a title search comes up with nothing current. I want to do the tax sale forclosure because it would then be a way I could clear the title and make it "marketable." : : Is there a way to still forclose on the property? : : Is there a way I could buy the house with my own money and move in and then do a "quiet title action" from the couch inside in front of the fireplace? DO you have any other ideas? : : This is my first house, and the help you have given me so far has been great. Thanks so much! : : Stu : ============== : Stu, : A bankruptcy petition stops any creditor action that would adversely affect the petitioner, until such time that the creditor was granted relief from the automatic stay of bankruptcy. : Since the bank has been in bankruptcy for 5 years I’m going to assume that the county tax collector has since received their relief from automatic stay and are plowing ahead with their tax lien sale. : Property taxes are the most senior lien on real property. So the title to the property would be free of all liens, including the 1st, after the tax lien sale. However you have no assurance that you will be the winning bidder at the sale. : Wiping the 1st off the title of the property is what you need. And the only senior lien that can do that is the property tax sale. : Again, a “quiet title action” won’t do you any good in this instance. And buying the house from the owner won’t advance your cause. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2004, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455