Thank you for your interest in Tax Title Services. The following
"questions and answers"
should answer the vast
majority of your
questions regarding Tax
Title Services and the
services we provide. If
after reading thru this
information you need
further information or
would like to begin a
relationship with Tax
Title Services, please
feel free to contact us.
TELL ME ABOUT YOUR
COMPANY and WHAT DO YOU
DO?
The name of our company
is Tax Title Services
and our objective is to
obtain title insurance
for tax deed properties.
We provide nationwide
Foreclosure Due Process
Certifications in order
to ultimately issue
title insurance by a
national title insurer
for the sale and or
mortgaging of tax deed
properties. The
certification is a
faster & normally
cheaper process of
certifying the accuracy
and completeness of the
tax lien foreclosure due
process which in turn
eliminates the need for
the current industry
practice of obtaining a
quiet title action or
waiting out statute of
limitation period.
HOW LONG HAS TAX
TITLE SERVICES BEEN IN
BUSINESS?
Tax Title Services has
been in business since
July 2000.
WHAT IS THE
FORECLOSURE DUE PROCESS
CERTIFICATION?
The Foreclosure Due
Process Certification is
the process of
certifying the accuracy
and completeness of the
tax lien foreclosure due
process in order to
ultimately issue title
insurance (by a large
national title insurer)
for the sale and/or
mortgaging of tax deed
properties.
WHAT IS THE
POST-FORECLOSURE "DUE
PROCESS" REVIEW?
The post foreclosure
"due process" review is
the process of
evaluating and comparing
the foreclosure title
report (search) to the
insurable title report
(search) ordered by Tax
Title Services and
verifying all the
required notifications
have been sent and have
proof of being sent.
HOW LONG WILL IT TAKE
FOR TAX TITLE SERVIES TO
APPROVE MY PROPERTY TO
OBTAIN TITLE INSURANCE?
Once Tax Title Services
receives a new file, the
typical property that
has all the necessary
documentation will
receive a Due Process
Certification in 45-60
days. Delays can occur
if Tax Title Services
has to ask for
additional information
or if difficult curative
issues are present.
WHAT STATES ARE YOU
CURRENTLY ABLE TO OBTAIN
TITLE INSURANCE ON TAX
DEED PROPERTIES?
Current active states
include:
AL, AR, CA, CO, DC, FL,
GA, IL, IN, LA, MD, MI,
MO, MS, NY, OK , SC, TN,
TX, & WV
Other states can be
added based on your
needs and number of
properties available for
service.
IS TAX TITLE SERVICES
WILLING TO ADD ANY
ADDITIONAL STATES IN THE
FUTURE?
Other states can be
added based on your
needs and the number of
properties available for
service in that state.
If you have other states
you would like us to
develop our
certification service
for, we would need a few
test files to use for
the 2-3 month
development process with
the title underwriters.
Once the initial
development of that
state is completed, our
normal 45-60 day average
turnaround times would
apply.
WE HAVE BEEN TRYING
TO GET TITLE INSURANCE
FOR TAX DEEDED
PROPERTIES FOR YEARS,
HOW IS IT THAT TAX TITLE
SERVICES CAN GET US TITLE INSURANCE WHEN NOBODY ELSE
COULD?
Our company president,
Dave Schumacher,
was a title officer &
Asst. Vice President for
First American Title in
their default division
for 8 years. This
experience gave him the
understanding and trust
necessary for First
American Title to take a
chance on this program
after years of never
issuing title insurance
on tax deeded properties
without a quiet title
action. After 3 ? years
of being in business,
Tax Title Services is
proud to say we are the
only company in the
nation able to obtain
title insurance without
a quiet title action. We
have also been able to
add 2 additional
national title insurance
underwriters for this
revolutionary program.
WHICH TITLE
UNDERWRITER IS WILLING
TO ISSUE TITLE INSURANCE
AFTER TAX TITLE SERVICES
ISSUES A FORECLOSURE DUE
PROCESS CERTIFICATION?
Tax Title Services
started this program
with First American
Title Insurance Company.
We have subsequently
added 2 additional
national Title
Underwriters for this
program for a total of 3
now issuing title
insurance on tax deeded
properties.
DO I NEED TO GET
FORECLOSURE DUE PROCESS
CERTIFICATION TO GET
TITLE INSURANCE FOR MY
TAX DEED PROPERTY?
In order to get
insurable title you have
two choices. You can
hire an attorney to
conduct a quiet title
action for many
thousands of dollars and
spend many months
performing the action
whereby the court
validates the tax sale.
The other option is
using Tax Title Services
faster and less
expensive alternative
whereby the need for a
quiet title action is
eliminated. We issue a
Certification which
validates the tax sale
to our program title
underwriters in lieu of
quiet title action.
HOW MUCH DO YOUR
SERVICES COST?
Fees to open a new file
with Tax Title Services
are as follows:
$750 (covers title
search fee, review fee
and hard
costs….remaining balance
will be applied towards
certification fee)
Hard costs are
as follows:
Property inspections
- $35
Good Faith
Investigations
- $50/each
County Tax Sale
File -
Varies
FedEx
-
$20
Once the file has been
cleared to issue a
Foreclosure Due Process
Certification, our
standard certification
fee ranges from $750 to
$1500+ depending on the
value of the property &
any applicable discounts
(higher liability
properties may have a
higher fee). Tax Title
Services has a variable
fee structure for the
Foreclosure Due Process
Certification that gives
discounts for lower
value properties
(normally vacant land)
and give discounts for
volume. Prices for
values of properties are
at $25,000 intervals and
volume discounts are
normally at 15 new files
per quarter intervals. A
discount may also be
given for older tax
deeds.
(Example: A Foreclosure
Due Process
Certification with a
property value of
$25,000 with no volume
discount is $750, $200
examination fee, $250
title search fee, and
miscellaneous hard
costs) Compared to a
quiet title action cost
of $1,500 to $5,000 and
time of 4 to 12 months
to complete the action,
our fees are less
expensive and much
faster.
ARE THERE ANY
COMPANIES OTHER THAN TAX
TITLE SERVICES ABLE TO
OBTAIN TITLE INSURANCE
FOR TAX DEEDED
PROPERTIES WITHOUT A
QUIET TITLE ACTION?
It is our understanding
that Tax Title Services
is the only company in
the country performing
this service.
WHAT KIND OF
GUARANTEES CAN YOU GIVE
US TAX TITLE SERVICES
CAN OBTAIN TITLE
INSURANCE ON TAX DEED
PROPERTIES?
Tax Title Services can't
guarantee a specific
property can get title
insurance, but if the
foreclosure due process
was done complete and
accurate with the risk
of challenge minimized
and the tax deed holder
confirming actual
possession of the
property, Tax Title
Services will issue a
Due Process
Certification. Once a
certification has been
issued, we have never
been refused title
insurance by our 3
national title insurers
(unless there are other
non-foreclosure related
title issues). If Tax
Title Services issues a
certification for your
property and you are
unable to get title
insurance due to the
property being acquired
by a tax deed, there
will be no charge for
the services performed
by Tax Title's Services.
BY USING THIS
PROGRAM, WOULD THERE BE
ANY ISSUES OF INSURING
THE TAX DEED PROPERTY IN
THE FUTURE?
No, the three national
title underwriters we
use in this program
consider this as
insurable title with
marketability defined as
the insuring title
underwriter's
willingness to insure
the property in the
future if other
underwriters are
unwilling to insure a
tax deed property.
WHAT IF I ACQUIRED MY
TAX DEED PROPERTY AND
THE PROOF OF THE NOTICES
FOR DUE PROCESSING IS
INCOMPLETE, CAN I STILL
GET TITLE INSURANCE
THROUGH YOUR PROGRAM?
Yes, if after the due
process review by Tax
Title Services, it is
discovered that all the
statutory requirements
have not been met, Tax
Title Services will
identify any
title-related defects
affecting the
insurability of the
property and recommend
and effect appropriate
title underwriter
approved corrective
action necessary to
insure title ("title
curing"). In some cases,
Tax Title Services is
unable to "cure" the due
process deficiencies and
a quiet title action may
be required to obtain
title insurance. To
date, in those instances
where Tax Title Services
was unable to "cure"
defects in the tax
foreclosure process, Tax
Title Services has
normally mediated a
buy-back or some other
type of workout with an
affected party where the
tax deed holder received
their investment back
plus costs & interest to
date with a premium
profit. This is the same
result had the tax deed
holder filed a quiet
title action and the
affected party defendant
contested offering a
settlement but done
faster, cheaper and more
friendly by Tax Title
Services.
IS OBTAINING TITLE
INSURANCE IMPORTANT FOR
TAX DEEDED PROPERTIES?
Yes, very important. A
big benefit of title
insurance is that
prospective buyers can
buy your property with
lender funds. Banks will
not lend money on a
property without title
insurance. If title
insurance does not come
with your property, the
market value of the
property is decreased
and you limit the number
of potential buyers of
that property (decrease
in sales price and
increase in marketing
time). With title
insurance, any qualified
buyer can get a loan and
purchase the property
for full market value.
IS THERE ANY WAY TO
DO AN EVALUATION OF A
PARTICULAR PROPERTY
BEFORE PURCHASING IT TO
DETERMINE IF TITLE
INSURANCE CAN BE
OBTAINED?
Yes, but except for
non-typical
circumstances, it would
be cost prohibitive. We
can go through our
certification review
before the sale but if
you are not the winning
bidder, you will be out
the prepaid $450 to
place the order with Tax
Title Services.
CAN TAX TITLE
SERVICES GET INSURANCE
ON ALL TAX DEEDED
PROPERTIES?
No, although this is
uncommon. If there is
massive failure in the
tax sale process, your
property may not be able
to be certified or
"cured" satisfactorily
to receive title
insurance through our
Certification Process.
In this instance, a
quiet title action will
be required to obtain
title insurance. If this
occurs, all you pay is
the review fee ($200)
and title search fee
($250; $360 in CA) plus
hard costs. The
insurable title search
is then sent to your
attorney to use for a
quiet title action,
which the attorney needs
to conduct the quiet
title action (no double
costs of title search).
Again to date, in those
instances where Tax
Title Services was
unable to certify, Tax
Title Services has
normally mediated a
buy-back or some other
type of workout with a
tax foreclosure affected
party where the tax deed
holder received their
investment back plus
costs and interest to
date and a premium
profit. This is the same
result had the tax deed
holder filed a quiet
title action and the
affected party defendant
contested offering a
settlement but done
faster, cheaper and more
friendly by Tax Title
Services.
DOES TAX TITLE
SERVICES HELP ME IN
CLOSING THE TRANSACTION
AFTER THE PROPERTY IS
UNDER CONTRACT TO SELL?
Once you have marketed
the property and have a
buyer under contract, we
will send the Original
Certification and
insurable title search
to the Direct Title
Underwriter Office or
their Title Agent
closing office. We then
advise you of the
contact information for
the closing office for
you or your realtor to
deliver the original
purchase agreement and
any earnest money
deposit. If any title
related questions or
concerns arise during
the transaction, Tax
Title Services will help
to resolve the issues in
order to close the
transaction.
DOES TAX TITLE
SERVICES HAVE ERRORS AND
OMISSIONS INSURANCE?
Tax Title Services is a
strong believer in
Errors and Omissions
insurance and has an
active E & O policy.
Additionally, we require
all our vendors to have
Errors and Omissions
coverage.
HOW DO I BEGIN THE
PROCESS OF INITIATING A
NEW FILE WITH TAX TITLE
SERVICES?
To place an order, fill
out our order form (on
web site) and send it or
fax it to our office
along with the tax deed,
and any resale purchase
agreement. Additionally,
you must include the
prepaid $750. Upon
receipt of the
information and the
prepaid fee, we will
begin processing the
certification order. Our
average certification
turnaround time from the
receipt of a new file is
30-45 days depending on
potential curative
issues we would need to
address from the tax
foreclosure. Upon
completion of our
process we will invoice
our certification fee
plus any miscellaneous
costs such as Fed Ex,
Airborne, inspections,
good faith
investigations, etc.
Upon payment of our
invoice (can be paid
through closing if there
is a current resale in
process), we will then
forward our
certification package to
our local program title
underwriter(s) direct
office or agent office
for the title insurance
issuance.
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