How does tax certificates work after the redemption period?

Smith Agency of Farmers Ins.: How does tax certificates work after the redemption period?
I purchased a tax certificate on a foreclosure because the mortgage company hasn’t paid the taxes. I have called the mortgage company and they say they can’t find it in their system. The previous owner, who it was foreclosed on is a friend of ours so we know this bank is who should have it. After the redemption period does that mean the deed becomes mine even though it’s not a person who is deliquent on the taxes?
The previous owner that the property was foreclosed on in Feb 09 showed us the paperwork from the bank. The tax office also has them listed as owner.

Answers and Views:

Answer by efflandt
You need to check your state regulations to see what you obligations are during the redemption period and how to get a deed once that is over. For example in my state you have to show that you provided required notifications to the owner. In some cases it might just be a matter of contacting the county clerk, or you might have to file something in court or foreclose. It varies by state.

How do you know that the bank still owns it or if it went to auction?

Answer by Bash Limpbutt’s Oozing Cyst©
Typically you have to foreclose on the tax certificate to take title. Each state has their own rules and procedures but the tax collector that you purchased the certificate from can advise you what the local procedures are.

The bank that did the foreclosure may not be the owner of record any more. In fact it may not have been the owner of record at all if it was just servicing the mortgage. You may need to run a title search to see if it has changed hands, though that should sit at the top of the deed registry page for the property. If your state records deed items chronologically in a master book instead of on a dedicated page for each plot it may be necessary to dig for a change of legal ownership. Any title company can do that for a fee. And while you’re at it, give serious consideration to a title insurance policy. If a lender came in from the shadows with a superior claim to yours you’d be on your own trying to defend it without title insurance.