An Introduction To Some Stickiness with Tax Sale Properties That Have Been Abandoned with Scott Walterbach
Scott Walterbach, an attorney with Bessine Walterbach LLP in Missouri, is back for more information concerning tax sale investing, especially in Missouri. This article will cover some nuances when investing in abandoned properties. Walterbach has been developing his expertise in tax sales law for more than 16 years and shared his knowledge and insights regarding investment in those tax sale properties that look like they need to be more interested in them. But, as he has experienced repeatedly, once you file notices to foreclose on a property, people come out of the woodwork to challenge you in court.
Learn from This Cautionary Tale in Missouri
Walterbach cited the example of an owner who had abandoned their property, and upon their death, the property went into probate. An investor bought a tax certificate on the property and later submitted a notice of intent to foreclose. That’s when an heir, who had never publicly recorded their interest in the property, challenged the investor in court. Their lawyer argued that the investor could have done more to locate and notify the heir. The case was ruled in favor of the investor, but it’s an example of where tax sale investors can get dragged into court when they least expect it. That’s why it is prudent for investors to look up heirs or potential heirs whose names appear in probate estate documents, even if they don’t appear in a title search report.
Where to Look for Nuances in Abandoned Properties
You can look for clues in the title search indicating that you should check out the probate documents. Sometimes, if you see a name but cannot locate the person, you can notify the attorney whose name appears on the document – and the attorney may know how to reach them. Or if you send notifications and get mail returned as undeliverable, you may want to do a skip trace search. Mechanics liens are another resource for finding people’s names on the public record so that you can send them notifications.
Following the letter of the law May Not Be Enough
Courts in Missouri and many other states tend to lean toward setting tax sales aside. That allows the owner to keep their property and makes the investor whole by refunding their investment and the interest payments they earned. From a judge's perspective, that can be the best outcome for everyone. Of course, if you’re the investor, that can feel like a loss – especially because fending off legal challenges can be costly in terms of time and money. So, it may be worth it for you to take the extra notification steps to convince the court that you genuinely did everything possible – not just the minimum required by law.
Seek Out Local Expertise Through an Attorney
Walterbach points out that someone local and with access to court records can be helpful. They may know which records to examine and where to find the names and addresses of persons you want to notify—even if those aren’t found in the collector’s office or a title search report. To learn more and hear his other tips and insights, listen to the entire podcast Walterbach did with Brian Seidensticker.
