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Lien search on land question

Tech141Tech141 Member Posts: 3,787 ✭✭✭
edited July 2015 in General Discussion
Howdy Folks!!!

I am looking to acquire some land that is adjacent to 60 acres I own in Missouri. It will be coming up on the County Tax Sale in August. One of the things I'm hearing is that I should do a Lien Search on it prior to bidding, that way I know what trouble I could be facing if I were to be the winning bidder. This brings up a question -

I have done some research, and it looks like a lien search by a title company will cost in the area of $400. That's kind of steep to my wallet. Does anyone here have experience with doing a lien search yourself? What are the steps? How much of a pain is it?

I have no experience with this, and any suggestions/advice/information would be greatly appreciated.

Thank You for your time. You folks are the BEST!

Mike
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Comments

  • select-fireselect-fire Member Posts: 69,518 ✭✭✭✭
    edited November -1
    You can go to the county land records division and find out everything about it, along with any liens on it. A tax sale means the taxes were not paid. Usually the last year and then the upcoming year are due. The sale will include all pricing to keep them up to date. However usually... at the tax sale the property will be bid for the taxes and whatever someone wants to pay. Then the previous owner has 1 yr to pay the back taxes and current taxes at a max % rate the state allows. Say the taxes are 5k and 5k behind.. You pay 20K for the property. You do not own it for 1 yr. Then anThen will be issued a Tax deed not a general warranty deed. attorney will run a title search and get any liens cleaned up. Great deal if that works. It seldom does. What happens is the previous owner will be contacted the property is sold at the tax sale. Then they have 1 yr to pay you back... with interest. I do have one that is due up in Nov. It is not going to be claimed because I know the previous owner and they are throwing in the towel on the property. It is approx 110K owed and will be cleaned up by my attorney. Cleaned up , I mean all liens will not have to be paid. Tax sale eliminates liens with a general warranty deed.
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  • ChrisInTempeChrisInTempe Member Posts: 15,562 ✭
    edited November -1
    I have't done one in 30 years. Liens are supposed to be registered in the county where the land is located. So that will be the office of a County Recorder, Assessor or Clerk. Used to only be possible in person. I imagine these days some counties may have records online.


    Be very careful and know the laws where you bid on tax liens. When I was doing it in a rural county, you owned the land if the lein was not paid off but also any debts against the land became your debts.
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  • mogley98mogley98 Member Posts: 18,291 ✭✭✭✭
    edited November -1
    Register of Mean conveyances should have any recorded liens listed. Many areas have these records on line some you will have to go to the court house or wherever they store them.


    A title search is cheap in the long run it comes with Insurance.

    Some tax sales allow the owner to pony up as much as a year later and pay interest and get their land back.
    Why don't we go to school and work on the weekends and take the week off!
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  • select-fireselect-fire Member Posts: 69,518 ✭✭✭✭
    edited November -1
    Once a year in this county. What a madhouse. Folks coming to pay taxes last day. Then properties being sold. They are on the block 15 seconds or less. I cannot believe how many properties were sold..like 1800 all day long from 8 am till dark.
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  • ChrisInTempeChrisInTempe Member Posts: 15,562 ✭
    edited November -1
    A long time back in Cochise County AZ it was a quick way to get 12% simple interest return on your money. Check there were no other liens on the property. Check the land was not worthless, as there is such a thing!

    Every tax lein I bought was redeemed by the owner inside of 10 months. I was paid 1% per month, 12% per annum.
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  • select-fireselect-fire Member Posts: 69,518 ✭✭✭✭
    edited November -1
    quote:Originally posted by ChrisInTempe
    A long time back in Cochise County AZ it was a quick way to get 12% simple interest return on your money. Check there were no other liens on the property. Check the land was not worthless, as there is such a thing!

    Every tax lein I bought was redeemed by the owner inside of 10 months. I was paid 1% per month, 12% per annum.



    That is the way to get a good return. Takes money to make money. Banks pay nothing on interest. And if they do not pay to get it back, have a fire sale and sell the property for 25/50% more than you paid. I am going again in Nov. What a riot.
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  • toad67toad67 Member Posts: 13,008 ✭✭✭✭
    edited November -1
    Unless you're going to pay cash for it a Title Company will perform one any way.
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  • Tech141Tech141 Member Posts: 3,787 ✭✭✭
    edited November -1
    I called the county recorder. She told me that with this particular property, it would be VERY SMART to get a local title company to do the work on it. Seems there are a lot of items listed in their database for this land.
    The previous owner wasn't the most honest guy in town, and people are pissed at him. The land in question is only 7+ acres, but it is strategically located for an excellent entrance to My property.
    There are also two houses on it, but they are in serious disrepair. I will most likely strip the salvageable/reuseable material from each and let the local Fire Department train on whats left of the structures. OH - there is a REALLY NICE 50 x 80 two-level barn on it.

    Guess I need to find a title company and get an estimate on what they will charge.

    Thanks for all the info/advice. Y'all have an Outstanding Day!
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  • Tech141Tech141 Member Posts: 3,787 ✭✭✭
    edited November -1
    quote:Originally posted by toad67
    Unless you're going to pay cash for it a Title Company will perform one any way.


    Yep - I pay cash. Mortgages/loans sucketh.
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  • bpostbpost Member Posts: 32,669 ✭✭✭✭
    edited November -1
    quote:Originally posted by select-fire
    You can go to the county land records division and find out everything about it, along with any liens on it. A tax sale means the taxes were not paid. Usually the last year and then the upcoming year are due. The sale will include all pricing to keep them up to date. However usually... at the tax sale the property will be bid for the taxes and whatever someone wants to pay. Then the previous owner has 1 yr to pay the back taxes and current taxes at a max % rate the state allows. Say the taxes are 5k and 5k behind.. You pay 20K for the property. You do not own it for 1 yr. Then anThen will be issued a Tax deed not a general warranty deed. attorney will run a title search and get any liens cleaned up. Great deal if that works. It seldom does. What happens is the previous owner will be contacted the property is sold at the tax sale. Then they have 1 yr to pay you back... with interest. I do have one that is due up in Nov. It is not going to be claimed because I know the previous owner and they are throwing in the towel on the property. It is approx 110K owed and will be cleaned up by my attorney. Cleaned up , I mean all liens will not have to be paid. Tax sale eliminates liens with a general warranty deed.


    This is correct.
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  • 47studebaker47studebaker Member Posts: 2,251 ✭✭✭✭✭
    edited November -1
    Go to the county Courthouse where the property is located and check with the county Treasurers Office, Prothonitary Office and the Assessment Office. They should be able to guide you of what and where to check on the property records.
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  • andrewsw16andrewsw16 Member Posts: 10,728 ✭✭✭
    edited November -1
    If you do it yourself, your risk is determined by how well you did the research. As a beginner, you just might miss something that will rise up and bite you in the tuchus. With a title company, you get people who are experienced at these searches PLUS you get an insurance policy so that if THEY missed anything, you still get your money. If this property was owned by a shady person, it would be a good idea to go the title company route. [:)]
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  • Tech141Tech141 Member Posts: 3,787 ✭✭✭
    edited November -1
    I have contacted a Title Company for info. Figure with this "bag o'snakes" it'll be best for an experienced professional to do the leg work.

    I hate getting bit in the tuchus.....
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