Nearly 48,000 people relocated to Montana last year, lured by the promise of a lower cost of living, less crowding, and stunning natural views. As Montana becomes a state that more people want to call home, housing prices are going up, and there is less inventory available. Savvy investors and price-conscious home buyers have come to realize that tax-distressed properties present a unique opportunity to acquire property affordably, either to make a profit or find a place to call home.
At PureTitle, we work with investors and legal professionals to provide tax sale consulting in Montana and other insurance and compliance services to help you avoid risk and protect your property investments. Contact us to get started.
What To Know About Tax Sales on Montana Properties
Since Montana is a Tax Lien Certificate state, you will need to purchase a Tax Lien Certificate if you want to buy the lien on a property. If the property owner wants to keep their property, and you have a Tax Lien Certificate, they must pay you the amount you spent on the lien plus 10%.
It’s important to note that Montana allows the homeowner a three-year right of redemption period that starts after the tax deed sale has taken place. This is significantly longer than most states, which have right of redemption periods ranging from 30 days to one year.
Before you purchase a tax-distressed piece of property in Montana, it’s important to identify whether there are issues or any defects in the title that could affect your ownership rights. This is where PureTitle comes in. Our property tax sale services in Montana are at your service to help you maximize your profit potential.
Title Insurance is Non-Negotiable
Though title insurance comes at a cost, it is well worth it. It provides valuable peace of mind and mitigates the risk of losing your entire investment. At its core, title insurance protects property ownership rights; protecting you against title defects such as undisclosed liens, errors in public records, boundary disputes, fraudulent conveyances, and other legal challenges with title review services.
The Two Types of Tax Sales
Tax sales fall into two categories:
- Tax lien sales
- Tax deed sales
With a tax lien sale, you do not immediately take ownership of the property. Instead, your first ownership interest would be in collecting outstanding interest and taxes on the property, offering you (potentially) an immediate rate of return. If the owner of the property fails to redeem the tax lien on time, the investor (aka the lienholder), can foreclose on the property and then acquire it through a tax deed sale.
In contrast to a tax lien sale, a tax deed sale provides direct ownership of the property in auction to the highest bidder. While there may be a right of redemption period, a tax deed sale can occur after the right of redemption period has expired after a tax lien sale.
A tax deed sale can be a smart way to acquire a property at a discounted rate, though investors should be aware of the risk that the property is poorly maintained, and there could be title issues that PureTitle can help bring to light with our tax sale insurance services.
The Importance of Seeking Montana Tax Sales Assistance
Title insurance is recommended any time property is purchased, and it’s even more critical for properties undergoing tax sales. In addition to the extended rate of redemption period in which an investor won’t be able to fully secure title to the property, other issues can arise.
At PureTitle, we provide tax auction support in Montana to help identify and resolve the following issues:
- Liens and encumbrances (including unreleased mortgages, covenants, and easement rights)
- Procedural challenges to the validity of the sale
- Quiet title actions
- Undisclosed claims and heirs
We will also include recommendations for addressing title issues to help simplify your real estate investing strategy.
Contact PureTitle for Tax Sale Services in Montana
You can trust our team of experienced professionals to provide top-notch tax sale service. Call PureTitle at (504) 300-0520 for tax auction support in Montana.
