How Title Companies Help with Tax Lien and Tax Deed Foreclosures

8/28/2025 12:00:00 AM

Picture this: You've just won a tax deed at auction. You're already planning your victory lap when reality hits—no bank will touch this thing, and potential buyers keep walking away after their attorneys take one look at the title.

Welcome to the wonderful world of tax sale titles, where "owning" a property and being able to actually do anything with it are two very different things.

Here's the thing nobody tells you at those "get rich quick with tax sales" seminars: title issues aren't the exception—they're basically guaranteed. But before you panic, know that title companies deal with this mess every day. They're like the cleanup crew for your investment dreams.

So you've been collecting interest on tax liens, and now it's time to foreclose. Sounds straightforward, right? Not so fast.

You can't just waltz into court and say "Your Honor, I'd like one house, please." You need to prove you've done everything by the book, and that means finding everyone who might have a claim on the property.

This is where a good title company becomes your detective. They'll dig up every mortgage, lien, and claim against the property—including that contractor lien from years ago that nobody remembers. Miss notifying someone? Your foreclosure gets tossed out, and you're back to square one.

Think of them as your insurance policy against rookie mistakes that could cost you the entire investment.

Congratulations, you own a property! Now try explaining that to a mortgage company or title insurance company. They'll look at your tax deed like it's written in crayon.

The problem? Your ownership is legitimate, but it's not "marketable" yet. It's like having a car without keys—technically yours, but good luck driving it anywhere.

This is where quiet title actions come in. Think of it as asking a judge to officially announce to the world: "Yes, this person really does own this property, and everyone else needs to get over it." The process typically takes anywhere from six months to three years (because apparently the legal system wasn't designed with impatient investors in mind).

Some title companies have figured out shortcuts that can get you marketable title in weeks instead of years. These aren't magic tricks—they're just creative solutions from companies that specialize in cleaning up tax sale messes.

Here's what you need to know: most title companies aren't excited about tax deed work. They'd rather handle nice, clean residential sales where everyone has proper documentation and nobody's trying to figure out what happened to the title decades ago.

You need someone who doesn't just tolerate tax sale work—you need someone who understands it. Look for companies that can explain the process without making your eyes glaze over and give you realistic timelines and costs upfront.

Ask them point-blank: "How many tax deed quiet title actions did you handle last year?" If they start hemming and hawing, keep looking.

Look, title work isn't sexy. It doesn't make for great social media posts, and it definitely doesn't fit the "flip this house in 30 days" fantasy. But it's the difference between owning a piece of paper and owning something you can actually profit from.

The costs vary wildly depending on where you're investing and how messy the title is, but think of it this way: you wouldn't buy a house without an inspection, right? Title work is your inspection for ownership itself.

Yes, it adds time and money to your investment. But the alternative—being stuck with an unsellable property—is way worse. Trust me, paying for proper title work beats explaining to your spouse why you can't sell that "great deal" you bought at auction.

This blog post is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investments carry risk and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.