Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Dealing with Former Owners

But what if you are dealing with angry, upset, and hostile former owners who feel they have been taken advantage of by the system, or who had a dispute with the former lender? My biggest advice here is that you don’t want to get in the middle of it.

State laws determine statutory rights of redemption and challenges by former owners. On the rare occasion when you or your attorney feels there are substantial conflicts that could impact your ownership, then you might want to wait a bit before doing any substantial improvements to the property. Your investment will still be protected by the procedures of the county and tax lien laws. I have only had one instance where the county later cancelled the sale and paid me back my money (plus costs) due to a legal challenge from a former owner. If I were you, I wouldn’t lose a lot of sleep worrying about this issue.

The former owner must have a valid reason to challenge the tax lien and your ownership of the property, such as that the tax sale was unfair, the sale was held before the required statutory notice period, or you or other owners were not given notice. Even then, their lawsuit action would be against the county, not against you.

The best way to avoid challenges is to do your homework and due diligence, including running a title search and making sure you know who owns the property and who has an interest in it. Have all title documents recorded and keep good records in case you need to prove ownership in ...