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Missouri Tax Lien- Can The Owner Redeem After 1 Year? |
Missourimama
7 Posts
Member Since: 09/19/2008
Springfield, MO
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Posted: 10:08 on 09-20-2008
This is my first tax lien deal. I purchased the certificate last year at the sale, waited till the one year period expired. The last day of the one year period had my attorney send out the legal notices to the owners (there were no other lien holders).
Per my attorney, there are two conflicting statutes for Missouri that can affect my right to the property. Statue....405 states that 90 day notices need to be served, however statute...420 states that after the one year period expires, legally the peoperty passes to me.
The reason for my dilemna(?) is that a 3rd party "friend"is attempting to redeem the property (which I believe is another investor scooping my deal). My attorney said that there is legal precedence for me to get the property as there is a recent court case that did not allow for a 3rd party redemption or sale after the expiration of one year.
I still have about 70 days left of the 90 day wait period, and am wondering if any experienced tax lien investors have any advice on the situation. My county collector acknowledged that those statutes are vague and open to interpretation.............. Can anyone come in and cut me out after the year is up???????
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NewKidInTown3
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Frederick, MD
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Posted: 16:35 on 09-20-2008
Just wondering why you waited until the redemption period was over to send out your 90 day notice. Why didn't you send out the 90 day notice nine months into the redemption period?
Just wondering if by waiting so long, you just extended the redemption period by another 90 days.
[ Edited by NewKidInTown3 on Date 09/20/2008 ]
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Missourimama
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Member Since: 09/19/2008
Springfield, MO
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Posted: 18:18 on 09-20-2008
Welll, I wanted to send it out 90 days prior, but the attorney I hired said that there was legal precedence for getting the property after the one year, as long as I sent my notices. She said the way she read the statutes, the 90 day period applied only to the lien holders, in this case there were none. She said
that the owners lost a lot of rights after the year was up regardless..
I do plan on sending my notices 90 days prior to the expiration next time around.....
I am just wondering if any Joe Blo can offer to undercut me and redeem the property?
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haynesm
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Member Since: 03/06/2005
Verona, MO
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Posted: 23:30 on 09-21-2008
Sorry to say this but you need another attorney.
Statute 140.420 does give you right to the property IF you have complied with 140.405. If you do not comply with 140.405 then at the end of two years the property goes back to the original owner, free and clear, as you have paid the taxes for him/her. Read and study very closely 140.405 You know by now that NewKid is correct is stating you have extended the redemption time. I guess you also know that you have 2 years to complete the process of claiming the property if it is not redeemed. 140.405 also says that once you have notified the county collector BY affidavit that proper notice has been given then anyone with a publicly recorded deed of trust, mortgage, lease, lien or claim upon the property shall have ninety days to redeem said property . It does not say that any Joe Blow can come and get the property. However, any Joe Blow may come and pay the monies you spent at the tax sale and then the original owners gets the properties back into their name, but not into Joe Blows name. But then Joe Blow could come and purchase the property from the owner directly.
Could you enlighten me on the case where your attorney said that there is legal precedence for me to get the property as there is a recent court case that did not allow for a 3rd party redemption or sale after the expiration of one year.
Can anyone come in and cut me out after the year is up??????? The answer is “yes”. BUT
And there are so many variables to this answer
.
I do not live that far from you. If you want to chat sometime let me know.
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Missourimama
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Posted: 10:01 on 09-22-2008
Thanks for your response Haynesm.  Yes, it would be nice to chat. I have read the forum here and appreciated your insights into the process.
I will ask my attorney which case she was referring to. She said it was a 2006 MO case. A third party attempted to pay in behalf of the owners, then buy the property. The judge found in favor of the purchaser at tax sale, as the other events happened after the one year period. My collectors office said the interpretation of the laws was vague. At this point all notices are sent and the affidavit was filed.
In this instance, I guess a third party did pay in behalf of the owners, then the collector sent me a letter stating the property had been redeemed. I went to turn in my certificate, but first asked.. " Did the owners redeem it or was it a third party with no legal claim to the property?" They informed me it was in fact a third party. When I took issue to that, and mentioned the above court case, the collector gave me back my certificate and said he was going to call the owners and reject their payment as it had not been made by them!
SOOOO, I really don't know where I stand at this point. Where is Verona??? Maybe we could arrange to chat- I would appreciate any info.... Thank you again
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haynesm
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Posted: 22:50 on 09-22-2008
I sent you a private message. If you don't get it let me know on here and will stry something else.
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tedo_101
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Member Since: 07/15/2008
Kansas City, MO
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Posted: 13:09 on 09-23-2008
If you two get together, let me know. I'd like to chat about some things, also.
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haynesm
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Posted: 00:01 on 09-24-2008
Tedo-101
Sure thing. Would love to have you join us. How much lead time or advanced notice do you need. KC is about a 4 hr drive. If we set up a meeting and you can make it here, then I will buy you lunch at the mess hall.
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tedo_101
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Posted: 10:54 on 09-24-2008
I only need a day or so lead time. I've folks that can cover down on my work. No need to buy my lunch It's worth the travel. I've got friends in Springfield anyway - I attended College of the Ozarks in Branson. Cheers, Chris
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Missourimama
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Springfield, MO
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Posted: 11:27 on 09-25-2008
We are willing to meet anywhere in Springfield or Verona, too. A couple of days notice would be fine. I will PM you with my contact info.....Thanks
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Missourimama
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Posted: 11:41 on 09-25-2008
Update for anyone reading the thread...
Collector called me and stated that the "owners" had sold the property and the new purchasers had redeemed the cretificate. He stated it was in their legal right to do so until the 90 days had expired and I had the collectors deed in my hands. BUMMER!
SOOO- my hubby wants me to regroup and start approaching owners from this years tax sale and see if they want to negotiate. After all, we know what was paid for the certificate...... If you can't beat em' join em'..... Any thoughts???
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haynesm
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Posted: 23:44 on 09-27-2008
Its a dog eat dog world. Bark, Bark. So at this rate why even go to the tax sale. I have noticed for a while that is what happens to properties that the city of springfield gets at the tax sale. Very shortly after the tax sale the city has a deed to the property. I was only guesing they were purchasing the properties but never checked it out. It didn't mean that much to me. Of course the properties the city gets is usually properties that are not useable, such as near a creek that floods
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NewKidInTown3
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Posted: 18:24 on 10-28-2008
Quote:
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On 2008-09-25 11:41, Missourimama wrote:
my hubby wants me to regroup and start approaching owners from this years tax sale and see if they want to negotiate. After all, we know what was paid for the certificate...... If you can't beat em' join em'..... Any thoughts??? |
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A tax lien sale is not a foreclosure sale. Until the tax lien is foreclosed, the homeowner has the right to redeem the lien. If the lien is not redeemed by end of the redemption period, then the lien holder can gain title by foreclosure, provided the lien holder has made all the statutory notifications.
Redemption does not wipe out all the existing liens on the property. If you are thinking that buying a homeowner's redemption rights will get you a free and clear property and wipe out the homeowner's mortgage lien, you need to reevaluate your strategy.
If instead, you are thinking that buying the homeowner's redemption rights and then redeeming the tax lien is a neat way to acquire a property subject to any existing financing, you may get some good deals this way, provided the property has significant equity.
[ Edited by NewKidInTown3 on Date 10/29/2008 ]
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