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Tax Sales Former Owner Title Companies

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lannercpa

Junior Member
What is the name of your state? STATE OF ARIZONA

HELLO:
I AM CONSIDERING PURCHASING A COUPLE UNIMPROVED LOTS AT A COUNTY TAX AUCTION IN ARIZONA. I NOTICE THAT A NUMBER OF PROPERTIES WERE FORMERLY OWNED BY TITLE COMPANIES. IS THIS A GOOD THING OR BAD?

ON THE BAD SIDE, OBVIOUSLY TITLE COMPANIES HAVE ENOUGH FUNDS TO PAY THE PROPERTY TAXES. DO THEY INTENTIALLY NOT PAY BECAUSE IT IS CHEAPER FOR THEM TO FORFEIT TITLE AND HAVE THE STATE SELL THE PROPERTY AT TAX AUCTION RATHER THAN HAVE THE TITLE COMPANY PAY FOR THE LEGAL COST TO "PERFECT" THE TITLE.

ON THE GOOD SIDE. IT MAY MEAN THAT THE PROPERTY HAD A TITLE POLICY AT ONE POINT IN TIME AND THEREFORE ANY TITLE IMPERFECTIONS WERE SUPPOSEDLY IDENTIFIED AND CLEARED BEFORE A TITLE POLICY WAS ISSUED.

ANY THOUGHTS ON WHY SO MANY OF THESE PROPERTIES OFFERED AT A TAX AUCTION WERE FORMERLY OWNED BY TITLE COMPANIES WOULD BE APPRECIATED.

THANKS.
 



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