Tax foreclosure on a house in trust - Posted by Ben (NJ)

Posted by Ben (NJ) on March 12, 2001 at 19:45:53:

other than being next to NY! (LOL) is that our judicial foreclosure process is basically the equivalent of a quiet title action. At the end of the process, (assuming everything was done properly) the plaintiff ends up with clear, marketable title. I have been able to get title insurance within weeks of final judgment. Some states have a one year “litigation” period where you just have to wait and see if anyone challenges your action before even thinking about title insurance.

Tax foreclosure on a house in trust - Posted by Ben (NJ)

Posted by Ben (NJ) on March 12, 2001 at 12:23:43:

This is a first for me. We have started foreclosing on a tax lien on a home owned by a trust. I joined everyone in sight including trustees and all unknown beneficiaries, their heirs, devisees etc. All notices against unknown parties will also be published in the paper. Since the tax lien runs with the land irrespective of ownership, I don’t see where the trust provides any benefit in a tax foreclosure action. Am I missing it or this is an unusual
situation where the trust provides no added protection?

Re: Tax foreclosure on a house in trust - Posted by Bud Branstetter

Posted by Bud Branstetter on March 12, 2001 at 20:25:39:

One advantage I see is that the beneficiary will not have a foreclosure against them.

Re: Sounds to me Ben, - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on March 12, 2001 at 18:40:36:

like the tax collector is always first in line to be paid. Since you have the unpaid tax lein, it looks to me like you will be first in line.

Now this is not to say that you will be paid quickly or without some sort of a court battle. It would not surprise me too much to see this case involve a partition sale or an action to quiet title so that you (the greedy tax collector), can end up with a clean title (all the marbles so to speak).

As long as the property has sufficient value to justify the added aggrivation that may be a good deal for you. I for one would be interested in the outcome, keep us informed.

Good point (NT) - Posted by Ben (NJ)

Posted by Ben (NJ) on March 12, 2001 at 20:46:47:

nt