In this video we discuss the Tax Foreclosure Certification Process, which is another way to resolve the title clouds on tax sale properties. Title clouds prohibit us from conventional selling methods since title insurance isn’t available. The tax foreclosure certification process is a possible resolution to some investors who would prefer not to do a suit to quiet title court action.

Transcript:

Hey, everybody! Casey Denman here from TaxSaleAcademy.com. In a previous video, we discussed Suit to Quiet Titles. And if you remember right, you use a Suit to Quiet to clear the title clouds on the properties that you purchase at tax sale auction.

Now, as we discussed in that video, if you purchase a property at tax sale auction, you will not be able to get title insurance immediately without further action. In this video, we’re going to be talking about another method to use to clear those titles, and it’s called the “Tax Foreclosure Certification Process.”

Now, this is a fairly new process. It’s only been around about 5 or 10 years. And what happens here is a company will research everything that is involved in the Tax Foreclosure Process for that particular property. Now, there are only a handful of companies in the United States that do this. But basically, that company will research everything that was done. The documents have to be filed a certain way, they have to say a certain thing. There are certain time stipulations that must be met by state law, there are certain people that are notified. There’s a bunch of stuff that goes on in the Tax Foreclosure Process.

This company will go in there and say, “Listen, everything was done properly” or it was not done properly. If it was not done properly, for a fee, they will help you to correct whatever the issue was. If it was done properly, they will tell their partner title insurance company that they are able to go ahead and issue title insurance on the property.

Now, notice I said “partner title insurance company.” You simply can’t get a Tax Foreclosure Certification Process done and go to your neighborhood title company and expect them to issue title insurance. What happens is these companies, these Tax Foreclosure Certification companies, have partnerships with preferred title insurance agencies that basically say, “We trust you to certify this process.”

So once everything’s done, and once they say that everything has been done completely, the Tax Foreclosure Certification company will notify the title insurance agency that they partner with and say, “Go ahead and issue title insurance on this property.” It’s basically a way to do it without going through the court system, without having to file a Suit to Quiet Title.

Now, these companies say that it is faster and cheaper than a Suit to Quiet Title. I don’t necessarily agree with that. If you remember right, a Suit to Quiet Title can take anywhere from a couple of months to an entire year to complete. It can also range in price from $600 to $5,000, depending on the attorney and the area that you’re in. These Tax Foreclosure Certification companies, they advertise that it takes anywhere from 45 days to 60 days, and the price goes from $1,500 to $3,000. So as you can tell, it’s a little bit faster and it’s a little bit cheaper than the high end attorneys, although it’s not always the cheapest method.

It could be beneficial to certain people however in certain areas when they go and shop around to see the cheapest price to get these title clouds resolved. What I suggest you doing is going around and calling the different attorneys. Ask them how much it will cost and how long it will take, and then compare those quotes with the Tax Foreclosure Certification companies, and obviously, go with the cheapest route.

For more information on the very lucrative tax sale business, check out my website at TaxSaleAcademy.com. And while you’re there, download your free copy of The Tax Sale Blueprint. Have a wonderful day!