Posted by Irwin on November 04, 1998 at 06:21:56:
The QT action, as John explains, is a Court adjudication (fancy word for judgment) that the tax sale buyer has obtained title to the property that is superior to all other claims, liens, etc… including those of the former owners, mortgage holders etc…(except U.S. tax liens). The reason for QT is that there are so many loopholes in most tax sale statutes (that can result in a void sale) that title insurance companies won’t insure title to a tax sale purchaser until QT is completed. So, be sure that you are going to get a clear title policy before you close and pay the purchse price.
Also, be aware that QT is a lawsuit that can be contested (by the former owner or lenders) and dragged out in court.