Tax lien voided by county because they "failed" to notify the mortgage company

[sc101]

What is the name of your state? South Carolina

South Carolina has a 1 year redemption process on their property tax liens. You bid on them at auction and it is a premium bid where you will typically bid more than the taxes are for. The delinquent taxpayer has 1 year from the auction date to pay the back taxes in order to not default on the lien. After the 1 year the county will start to process the deed over to you. This usually takes at least 8 months (used to be quicker). I have had them drag things out forever 2-3 years on some deeds. In my time bidding on these liens I have felt like there have been some sketchy stuff going on not to mention incompetence (heard from other investors as well). Have had deeds voided for various reasons and felt powerless as I know the govt going to have the final say in all matters.

So here is another deed I have been waiting on for about 1 1/2 years past the redemption date. Multiple visits to the office to inquire about this and another property. When I went down this time I happened to mention to them that it was currently on the market for sale, completely renovated. I also told the office clerk there was a foreclosure which I saw after the redemption period but the bank didnt pay the taxes. The foreclosure happened in 2014. I paid delinquent 2015 and 2016 taxes. Now mind you the county has their own lawyers and has had this for a LONG time. I never told them this before. Well after waiting awhile the head treasurer comes out and tells me they have to void it because they didnt notify the mortgage company. Sorry. Ughh... Now mind you on the tax page there is information on the taxpayer AND on any lienholder like a mortgage company. Doesnt seem right they would only send a delinquent tax notice to just the taxpayer. Also why wouldn't the mortgage company be paying taxes all these years. Still are delinquent for 2017 and 2018 now as well I believe. I wouldnt be as upset if I havent had other problems with them. I know I'm probably out of luck but any ideas?

 

[PayrollHRGuy]

It really can't surprise you that a governmental entity is in any way incompetent?

 

[sc101]

It really can't surprise you that a governmental entity is in any way incompetent?

LOL...No not surprised at all. I feel partly stupid for bringing it to their attention. I was there because they sent me paperwork to pick up a different deed but they had the wrong property on the deed! Again not surprised... While there trying to straighten that out I brought up this matter. I feel if I just left it alone and let it play out (and let the county lawyer handle it) I may have ended up with the property. But NO....she came back with it and a gave me the generic blanket VOID answer. Like one of those kids cartoons....VOID it! Next in line!

 

[LdiJ]

LOL...No not surprised at all. I feel partly stupid for bringing it to their attention. I was there because they sent me paperwork to pick up a different deed but they had the wrong property on the deed! Again not surprised... While there trying to straighten that out I brought up this matter. I feel if I just left it alone and let it play out (and let the county lawyer handle it) I may have ended up with the property. But NO....she came back with it and a gave me the generic blanket VOID answer. Like one of those kids cartoons....VOID it! Next in line!

Realistically you were not going to have gotten a property that had been foreclosed upon by the bank and completely renovated by the bank for sale. You just weren't going to end up being that lucky. The bank would have fought you tooth and nail once notified and I suspect the could/would have out gunned you in court.

 

[sc101]

Yeah I never really had much expectation of getting this one after seeing the foreclosure. I only saw it after the 1yr redemption period passed. I was doing a cursory reinspection of the property. I fully expected to get a letter saying they were voiding the transaction. As time dragged on and I kept bugging my contact down at the treasurer office he assured me they were working on this and others. I was thinking, well the bank obviously didnt pay the taxes, and the tax lien holds priority over pretty much everything except a federal lien. Who would think my brilliant county government would not send them notification that a tax bill was due the last 4 years? Me forgetting that they are who they are... Ok I was a little salty yesterday, and it was not just this issue but ongoing issues with them. Im over it now. Thanks for letting me vent.