Question: In tax deed states that have a redemption, can we buy the redemption rights from the original owner? seems that we are purchasing the equitable right of redemption which is real property. Also, it would be with a quitclaim deed or other special contract?

Bahiyaa Amatullah: <---AlabamaI have purchased the rights from the owner. Had them do a quit claim deed. Хайме Фариас: Redemption rights are the only rights the home owner had during the "redemption period" correct? So that's what you'd be buying and inheriting with a quitclaim deed? Do you do a title search just to make sure there's no other issues with the title? Paul Vincent: Yes. But make sure you do a thorough title search to ensure you’re not just purchasing another giant lien you’ll have to pay off for clear title. Хайме Фариас: Wouldnt most liens and mortgages (minus IRS and county improvements) have been wiped since this would be after the tax deed sale?
Paul Vincent: Depends on how your state works. Not until you foreclose in my state (Ohio) do you wipe other liens.
Хайме Фариас: I’m in TX. Redeemable deed state. So now I’m wondering if the mortgage and liens are wiped right after the sale or after the 2 yr redemption period is up
Paul Vincent: Oh ok. Texas you’re good with mortgages, as long as they were properly served with notice of the sale. There are some liens that maintain like government, child support (maybe?) etc. However, I’m an Ohio guy and don’t know much about TX sales.
Хайме Фариас: I plan to run it by a title company. Hopefully they mess with this kind of transaction. I heard many hate quitclaim deed. I’m not sure if deed w/no warranty transfers the redemption rights like a quitclaim does
Dan Springsteed: I believe that it will be different from state to state.
Kelly Dunaway: When you say ‘buy the redemption rights’ you mean they sign the property over to you for a fee? I’ve seen people say they have done that by contacting the owners and doing a quit claim deed.
Хайме Фариас: Yes.. Some do it right before the tax deed sale. Some do it after the sale, but within the redemption period. For example, I saw a 115k home sell at tax deed sale for 45k. If the person with the redemption rights bought the home back, it would cost around 56k(bc of the 25% interest penalty in TX). So you’d have a 115k market value home for 56k price
Хайме Фариас: Tax investors made a 25% return on his investment so he’s happy. And you got the equity diffc so you’re happy
Kelly Dunaway: I see. We have a land parcel in Comal County TX right now.
Kelly Dunaway: So if you bought the redemption rights you would be paying more than the example of 56k though Right? You would be giving something to the owner as well?
Хайме Фариас: From what I hear, 98% of those that lose their home to tax deed won’t redeem. You’ll need to get a feel for what they’re gonna do. If they’re not gonna redeem, nothing changes. If they sign a quitclaim deed, they can make some money. How much? I don’t know.. I too giving so I think thousands. The guy who mastered this method only offers $100.lol. He said, “I not buying a house from the.. I’m paying them to sign their name a couple of times”
Carolyn Morales: In Florida we often offer the owner what it would cost us to quiet title plus whatever 5 or 6 months time means to us.
Хайме Фариас: All this is theory to me, as I haven’t used the method yet. But it seems to be a great strategy that few use. To quiet you need a hearing with everyone that had an interest in the title at the time of the deed sale?
Kelly Dunaway: It’s over my head at the moment, but sounds like a good idea to keep in mind.
Carolyn Morales: Хайме Фариас in Florida a Quiet Title suit just repeats the notification process that the tax deed office already did and a title search and they wait out the allotted time then file a default when no one comes forward and in the wording it includes Lis Pendens foreclosure language., Then the judge signs off and your title is quieted. If you pull up a Tax Deed sale transaction and then 6 to 7 months later see an MS transaction for $100 , that is generally the quiet title suit. But the cost to quiet title uncontested is about $2300.00. So if you can find owners and intercept the auction or escheat date that is always best by a quit claim sale.