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 periods.
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, NY, ID, AL, AZ, WA, TX, TN, PA, NV & MT. Other states can be added based on your needs and the number of properties available for service.
Once you obtain your tax deed or receipt of purchase from the sale, you would fax us a copy with anattached 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 $4,000-$8,000 plus hard costs as well as take 6-12 months to complete. Our certification service will cost you on an average of $400-$1,500 dollars plus hard costs depending on the property value and take 45-60 days on an average.
Our fees include $250($350 - $600 in SC and CA) for insurable title search and $375 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 fee.
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:
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.