Looking for Tax Lien Properties

I discovered our county has a separate GIS map link online for the tax assessor which shows delinquent properties outlined in red. Information was available online for the amounts owed, if a tax lien was already held on the property and the owner of record with their address. Properties have to be at least 18 months delinquent to purchase a tax lien in our county.

Incredibly, two properties adjacent to our acreage were available for tax liens. One property was 2.5 acres and the other was 1.17 acres. Both properties were more than 10 years delinquent and owned by private parties (not corporations or trusts).

We had a little money saved up so we purchased the tax liens at the tax assessor’s counter just short of the yearly deadline and not at the February tax lien auction. I spoke with our county treasurer when getting the tax liens and asked him about the process. He happened to have a handout from the County Court Resources Library outlining the step-by-step process. I found out later on that there was an updated version of the form on the court’s website.

I waited until after the holidays (and tax season) to start the process. So it was around April/May when I really started going through the steps. It was a little intimidating at first. I made a few clerical errors along the way. However, it was do-able and I didn’t have to hire an attorney to complete the process. Yay, me!

The Legal Process

Our first step was doing a preliminary title search to be sure that both properties were not involved in any bankruptcy or liens already. A local title company did this as a complimentary service. Both properties were clear of liens.

Next, we sent all of the previous owners (and the County Treasurer) a notice of intent to foreclose through certified mail at their addresses that were on their tax accounts with the county. It was not surprising when ALL of the letters were returned since none of the people were still at those addresses.

Then, I filed the Complaint to Foreclose the Right to Redeem a Tax Lien with the County Superior Court. This was around $300 for each property. I received several official copies back from the clerk to serve the County Attorney as well as any named parties of the properties’ deeds.

Trying to Locate and Serve Previous Owners

I determined that most of the previous owners were deceased after a thorough Google search and some reverse address look ups and snooping around Ancestry.com (which is very helpful for census, marriage, birth and death records). I saved copies of any online obituaries for the court, should they require them. I did locate a living relative who was named by their married name on the deed of one property and had them served. The Process Server charged around $150 to serve them.

There was a lot of anxious time waiting the required amount of time to see if the owners would redeem the property. If they had, we would have been reimbursed for the amount we paid plus interest. However, the properties were not redeemed.

The acre property had only one owner who was deceased had to be served through Notice by Publication. I filed the form requesting the judge’s permission to do Alternative Service (publication) with the Court Clerk and waited for the response by mail.

I received the response from the judge later that week with permission so I contacted a newspaper in our county and one in the county of the previous owner’s address. We had to advertise the court summons in each paper for the duration of the time required.

Finally, I was able to file for the judgement hearings for both properties after waiting the required amount of time. This was the very exciting and nerve-wracking part! I had never had to appear in court before and wasn’t sure what to expect from the judge.

The Courtroom Process

The day finally arrived for the first hearing and I arrived to the courthouse on time and found the correct court room. I had copies of everything I had discovered about the previous owners during my research phase and everything I could think of that I could possibly need, including my laptop.

I cautiously opened the courtroom door when I heard laughing inside. I quietly sat in the back row since I was 20 minutes early and began to watch the proceedings. The judge was very personable and friendly. The case before me was also a tax lien case the judge heard virtually over Zoom with an attorney representing.

The attorney made it seem very easy. He had had all owners physically served, the appropriate paperwork was filed and correct, the judgement was issued in his favor and the case was closed. Easy-peasy! I made a mental note of his wording.

Next, it was my turn and the Judge called me forward. I was the only person in the courtroom besides him and his court clerk. We had a nice informal chat before the case was officially called.

The judge pointed out the errors I had made pertaining to the original tax sale date and the tax ID number (which the County Attorney had outlined in their response to my Summons). It was easy to correct by asking for an amendment to be made using the corrected number and date.

Then the judge asked about the service of the summons and next thing I knew, the judgement was issued in my favor and the case was closed! It literally took 5 minutes! I was so overwhelmingly happy!

The same process happened at the hearing for the other property and – presto! I now have more than tripled my acreage!

The Transfer Process

But, the process wasn’t over yet! I still had to get certified copies of the judgements and take them to the County Treasurer’s office. $60 later the County Recorder recorded the deeds in my name.

In summary, it was a rather drawn out process and there were some costs along the way (advertising isn’t cheap and the court cost was a bit spendy also), but we own more land!!! YAY!

Join the Tax Lien Club!

My co-worker who lives in our area as well was also able to successfully get two tax lien properties near her home and is improving them as an investment. Check out my interview with another area resident living off the grid who expanded her homestead by purchasing the tax lien on property adjacent to her!

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