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Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds by Chip Cummings

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Understanding the Foreclosure Process

Your first step is to get legal control of the property. How to do this is not the most fun topic, but it is one that we need to cover in detail. Just because you have a tax lien and it wasn’t redeemed does not mean you automatically get legal possession of the property. In almost every case, you will have to file a petition with the county and/or the court to have the lien transferred over to a tax deed.

Remember: this is a process best handled by the pros. I strongly recommend that you consult an attorney when filing a foreclosure action, since many things can go wrong, and one slip-up could cost you a lot of time and money, especially if you have to start over.

When a property owner fails to reclaim the property during the redemption period, you have to foreclose on the property in order to get legal title. The term foreclosure means a lender takes title away from the owner as a consequence of the borrower’s failure to make payments.

While this is a tough situation for all involved, there may be times when this is your only alternative, and you should be prepared accordingly. The critical components of a typical foreclosure are as follows.

You file a tax foreclosure or a quiet title action in the appropriate court in order to do what is called perfecting the tax deed, and have it legally declared that your title is superior to all others. The lawsuit and the summons are served on the property owner and anyone else who has a recorded interest ...

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