Find a qualified local TAX LIEN ATTORNEY in your state to help you NOW!
If you’re looking to hire a tax lien attorney to help you with your investment (tax lien certificate, tax deed, quiet title), then keep reading below!
An action for quiet title is a lawsuit that you, as the tax deed recipient, file with the court to eliminate any future title claims against the property and remove what’s called the “cloud on title”. Tax deeds are the least defensible form of ownership for a property. The taxpayer or mortgage company on the property could claim that they were never notified that they owed taxes. Many times, there may have been a death of the property owner and the heirs never realized they lost the house for taxes.
To eliminate such problems, a tax lien attorney will file an action to quiet title (or some other equivalent action depending on the state). If the action is successful, a judge will rule in the favor of the tax deed holder and eliminate any interests or claims of those served as defendants to the lawsuit.
It depends. The question you should really be asking is “do in NOT need to file for quiet title?” Here are the most common reasons why you wouldn’t need to file:
First, your tax lien attorney will order a title report that shows anyone of record that has a legal interest in the property. This costs $100-$300 plus attorney fees depending on the state. Your attorney will then serve notice on everyone on title plus usually the property address and occupant, if any. At the same time, the lawsuit is entered in the court. If no one responds, then the judge will issue a default judgment quieting the title. Total time varies depending on how backed up the court is but averages between 3-9 months. Work out costs with your attorney beforehand—it should only cost $1000-$4000 depending on your state and filing expenses. If someone does respond, then the attorney will evaluate a response. Outcomes vary—listen to your attorney’s recommendations as he or she will know what the best strategy is to either continue to push for quiet title or work out a settlement (maybe even for a nice gain).
Remember that tax deeds do not wipe out most government liens and subsequent taxes. You’ll still be responsible for municipal fines, accrued taxes and other liens recorded on the property. Also, the quiet title judgment isn’t completely infallible and has been overturned in rare circumstances. Be sure your tax lien attorney has experience with filing quiet titles.