Posted by Bill Scott on November 04, 2000 at 19:46:07:
Wow Scott—this sounds like a law school final for property class! You really need to find a good, local Real Estate attorney that can unravel puzzles like this–but let me see if I can help:
The seller is the mortgage company----which means that they must have held a mortgage on the property. In turn, that means that this company should have had this mortgage recorded—such that when the Sheriffs sale for non-payment of back taxes was scheduled, this company should have been notifed–right? Usually these mortgage companies show up and bid the mortgage amount to take the property back. Did they do this?
However, you also say that a ‘tax bidder’ bought the property a year earlier? Hmmmm, did the county not clear the tax lien? Was this a Federal tax lien? Did this tax bidder not record title? In other words, how did the tax bidder do this without the mortgage company getting wind of this?
You do mention a ‘redemption’ period—that usually means a sale for property taxes occurred. Usually, the mortgagee has (depending on the state) six months to a year to redeem the property paying the back taxes and fees. So, do we now have a third party in addition to the tax bidder and the mortgage company?
There is a lot more information that you need in order to figure out what to do. With what I see so far, I wouldn’t bet on getting a clear title without an attorney and a quiet title action. Are you sure you couldn’t find a better deal with fewer headaches?
Just my two cents worth…