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COURTHOUSE RESEARCH
A SIMPLE PRIMER.

Now, here are  a few simple tips on doing research at the courthouse.  I see a lot of questions on my chatroom and other chatrooms regarding this subject.

First, when you need to visit the courthouse to do your research you need a plan.   The following  is a procedure that has worked well for me over the years.

When I receive a notice of a  tax sale whether it be a copy of the newspaper, a list of the properties furnished  by the Treasurer or Tax collector, a list furnished by the Attorney handling the legal work or from a download off  the internet,  I do some preliminary work at home.

I first take the list and number the items coming up for sale in numerical order starting with the number 1 and on through to the end of the last  item on the list.

My first stop when arriving in the county where the sale is to be held  is the county  courthouse.

My first stop in the courthouse is the office of the county official responsible for the sale.  What I need here is a list of all properties which have been redeemed up to this point in time.  This saves me a lot of work.

The next step is to obtain plat maps so that I can physically locate and inspect all properties. These plat maps are absolutely necessary when getting ready to check out property coming up for public auction.  They can normally be found in more than one of the courthouse offices.  Generally speaking all plat maps have to be recorded in the office of the County Recorder, County Auditor, Office of the County Appraiser, or County Clerk.  Sometimes they are found in all of these offices.  How do I know which plat maps I need?

This is work that I can also accomplish before leaving home. This list will always have a legal description of the property being offered for sale.  I scan through the list and make a list of all the properties that are located either in a city, which has ADDITIONS, or in the County, which has SUBDIVISIONS.  I write down the names of these Additions or Subdivisions.  I then go to one of the offices listed above and obtain a photocopy of each map that I need to help me locate the properties.

I also obtain what is commonly referred to as a county "grid" map.  This is a map of the entire county that shows the Township and Range Numbers.  Each of the plat maps will have a Township Number, Range Number, or in the case of additions to a city, the name of the city.  By the use of the county GRID map, I can find the approximate location of all cities and Subdivisions in the county.  I use these maps to organize a route so that I will not have to back track very many times to find each of the properties.  The way I do it is to take a copy of the newspaper advertisement and number each item coming up for auction in ascending numerical order starting with the number "1".  When I locate that property on the plat map I place that number along side the lot number or the approximate location on the county map.  I do this for the entire list of properties scheduled to be sold so that I will not miss something good.  I check out EVERY property on the list.

Here is where the real work begins.

I use the owner's name or the parcel I. D. number to check the tax assessment rolls to determine the value of the land and the value of the improvements.  I jot down these values on my tax sale list beside each property description. Also, I jot down the address of the owner if it is different from the property (situs) address.  I may need to contact the owner before or after the sale. .  If there is time before the sale, I may want to try to buy it from him prior to the sale for pennies on the dollar.

You can also check the Assessment Roll to see if the property owner owns other properties in the county.

You can trace the history of any property in the county back to the time that the State became a part of the United States if you want to spend a little time.  Generally, speaking, at this point in time you have narrowed your list of possible buys down to a precious few.  The Grant or "Direct" Index books refer to the Seller or the Mortgagor.  The Grantee or "INDIRECT" index refers to the party receiving a deed or other instrument relating to the property.

I start with the name of the owner listed on the list of properties for sale and go to the Grantee Index.  I look up the book and page number whereby he obtained title.  If I want to check if there is a mortgage or other liens attaching to the property, I then flip over to the Grantor index and look up the present owner's name.  If he has signed a mortgage, after he became the record owner, that mortgage will show up here in this index.  The book and page number where it is recorded will indicate a place to view the actual document. I can switch back and forth in these two books and make certain that all mortgages and liens have been released, if I think that is necessary.  It normally is not necessary in the case of judicial foreclosure sales where the sale is the result of a court order obtained after all parties of interest have been served (or service has been attempted).  When the tax lien certificate sales or the tax forfeited land auctions are "ministerial" in nature it is a good idea to check these records carefully.  County Treasurers, Tax Collectors, County Auditors, and others responsible for conducting these sales are not usually practicing attorneys and the procedure is not always handled in a proper legal manner. You need to make certain that all parties of record have been properly served.  You can even ask the county officer whose responsibility is to conduct the sale to show you the record of who was served in each case.  Check the certified letters and the returns received, not deliverable or refused.  In the case of ministerial tax sales it may be wise to do a quit title action to confirm fee simple title in your name.
 
 

This is a concern of many investors in Tax Lien Certificates and in those attending public auctions of tax forfeited real estate.  It is easy to check.  These liens are normally recorded in the office of the county recorder or county clerk.  All you have to do is ask to see their lien book.  Just ask the clerk where IRS liens are filed.  This lien book is in alphabetical order by last name.  By the time I get ready to check here, my list has really been narrowed down.  It is very easy to run several dozen names through this list.

In the case of judicial foreclosure sales each case will have a Case File number.  You can ask the clerk of the court to show you each of these files.  There is a lot of valuable information in each file.  You can verify upon whom service of process was obtained and who was not served or could not be found.  You will see a legal description, the names and addresses of the party(ies) whose taxes are being foreclosed along with other interesting information. In many cases documents in this file will even give you an adjudged or appraised value of the property.

I always visit the Chamber of Commerce and pick up all the literature that I can.  If I have purchased some properties at the sale (This is the case 95% of the time), there is a lot of valuable information in this office that will help me do a brochure on the property.  They normally have city maps and sometimes county maps.  You can learn about industries, employment, housing, pick up literature about properties for sale, information on local realtors, and a host of other valuable information.  You can obtain a list of local news media in which you might want to advertise your newly acquired real estate For Sale.

This is not all you need to know to research properties in any county but it will give you a quick start.  You will learn by doing.

There are currently 31 states that offer you the opportunity to invest in what are know as tax lien certificates.

A tax lien certificate is nothing more than an evidence of a lien.  The purchaser of a tax certificate at a public sale of such certificates is purchasing the lien of the county or other taxing jurisdiction. The purchaser of a tax certificate hopes to receive a high yield on his money when the certificate is redeemed. In the event the owner of the property does not redeem the holder of the tax certificate is entitled to go through whatever legal procedure is established by statute to receive a deed to the property.

In states having tax certificate sales, those sales are usually held on the same date each year.  A tax lien is superior to all other liens.