you do understand that selling a property at a tax sale is generally subject to a redemption by you for a period of time. I don't know south carolina law and each state is different, but generally it is a few years minimum.
you can get title back by paying the delinquent real estate taxes, plus interest, which goes to thebuyer of the tax sale. this happens all the time and people buy properties at tax sale to get guaranteed high interest rates. they either get the interest or the property, but that happens probably one time out of a hundred.
if you redeem the tax lien, the title clears and the suit you mention is dropped without you having to do anything. The amount they are filing in the suit is probably just the remaining balance of your morttgage, plus a little gravy for the attorneys.
Quoting: Anonymous Coward 859819Thanks for your help and input.
The redemption period has expired I tried that route first.
This really is a crazy circumstance. I didn't even know I owed the taxes I thought they were being paid through an escrow account how every other piece of real estate I owned operated. It wasn't until I went to refinance with the same bank when they told me that they don't escrow money on lot loans that I had a problem. It was already 4 years later. The property was sold at the tax sale 2 years before which is how long the redemption period is.
I had never received any correspondence from the tax office because when the deed was prepared they put the wrong address on it. I reviewed the HUD-1 and all the loan documents after I got them back from the attorney that acted on my behalf everything looked correct. I missed the incorrect address on the deed. That was the only document with an incorrect address and in this case the only one that mattered.
South Carolina law states that the first lien holder must be notified about delinquent taxes because they stand to lose the mortgage. Typically they pay them then garnish the person they loan the money too. In this case that didn't happen. The bank was notified correctly via certified mail at the correct location and they lost the notification and did nothing about it. I actually have a copy of the certified mail receipt from the tax office that I got through the freedom of information act.
The land is pretty valuable. At one time it was worth about 400K now probably low 200's. If it was a matter of the surplus funds being enough to pay the loan off and get rid of the mess with the bank while I deal with going after the settlement attorney for my loss I would do it in a heartbeat. I owe about 93K on the land and there is around 42K in surplus.
By them doing this it really throws a wrench in the works because I need the 42K for a down payment on another loan to get the land back so I can turn around and sell it and pay the banks. Now with these guys asking for the money and to be reinstated as the first lien holder no one would lend me the money if this goes through.
