Home Buying in Fort Wayne>Question Details

dwayne.lastr…, Home Buyer in Glen Carbon, IL

If you buy a house through the county or city for the back taxes owed on it but the bank has a lean on the house...Do you in fact own the house?

Asked by dwayne.lastrapes, Glen Carbon, IL Wed Jul 10, 2013

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Dwayne, are you buying in Indiana or Illinois? As far as Indiana goes, when you get the deed it is your house. But if there is a mortgage lien against the home, it will stay with the home. Now the banks more than likely do not want these properties back otherwise they would have paid the taxes and kept it from going to tax sale and then they would foreclose on the property.
On tax sale, you get a "tax deed" that supposedly wipes the title clean, but it is NOT insurable! With a county property you will get a "quit claim deed" and it likewise is not insurable. You would have to go through the quite title process in both cases to get insurable title and make sure that the banks/mortgage companies have no claim against the home. Your other option is to hold the property for 10 years. If any of the lienholders do not make any claims in that timeframe the title will become clear and insurable.
It is very important to make sure you do your due diligence and thoroughly research the title.
0 votes Thank Flag Link Thu Jul 11, 2013
Liens stay with the property at a tax sale. You are buying the property subject to those liens. They don't go away when the title changes hands.
0 votes Thank Flag Link Wed Jul 10, 2013
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