Federal government seizes property, what to do? - Posted by jim wa

Posted by jim (wa) on June 15, 2006 at 20:35:17:

The title officer claimed that he could not issue a title report on the property. So, I’m not sure the encumberances look like either. The docs do not appear in the public records, that I can see.

Federal government seizes property, what to do? - Posted by jim wa

Posted by jim wa on June 14, 2006 at 22:58:47:

Here is the problem:

I found a vacant property that has been taken control of by the federal government under federal court, due to conspiracy to distribute controlled substances.

I am in contact with the owner but the title officer tells me the owner does not have the ability to sell or convey title at this time.

Is there any way around this, the owner is willing to sell?

Any insight or experience would be much appreciated.

Re: Federal gov. seizes property - move on - Posted by John Corey

Posted by John Corey on June 15, 2006 at 08:45:55:


When you say the government seized the property they effectively took the property from the owner. The present owner is the US government and not the person you are talking to.

The process involves a court order. The court has the legal right to force the transfer over the objections of the prior owner. Until the matter is settled in court there will be little you can do.

Look at it another way. If there is any issues about who is on title you can not get title insurance. Once the court decides if they are going to take the property then the title will be clear. If the government becomes the owner there is a process by which they can sell it off. They can also transfer it to another agency for use by that agency (more common with vehicles).

I am sure the owner is willing to sell as the owner likely knows they have lost their claim to the property. Unlikely they can sign a deed to transfer something they do not own (other than a quit claim which serves no purpose this time around).

John Corey

Federal government seizes property, what to do? - Posted by Bill H

Posted by Bill H on June 15, 2006 at 07:12:39:

Sounds to me like a federal siezure by the DEA and it will probably stay there until is shows up on the U S Marshall’s Treasury Auction List after the court process is completed…how long?..don’t know.

Check this site from time to time and it will probably appear there: http://www.ustreas.gov/auctions/

Good Luck,
Bill H

Re: Federal government seizes property - Posted by Kristine-CA

Posted by Kristine-CA on June 14, 2006 at 23:05:48:

If it were me, I’d read the entire title report with copies of the docs (ask
the title company) to see what kind of encumbrances are against the
property. It’s possible that what is owed is greater than the value. I’m
curious what docs the feds have recorded against the property and/or
owner, as I’ve never run into docs recorded by the fed. agencies, other
than the IRS. Is it the US Marshalls?

Until you understand the chain of title and the nature of the recorded
docs, it’s impossible to know if there is a deal there. Kristine