Once the property is sold, the referee’s deed is typically non-redeemable. Some clients tried to raise the no serving issue as a legal argument, but got dismissed because the municipality follows the local established laws and legal processes to foreclosure without recourse.
In this example, there was a loss of about $500,000 to the investor. The investor is a large note portfolio buyer. This is just one loan in the full portfolio acquired; however, if the township search for unrecorded liens had been ordered, the loan would’ve been dropped from the sale. I cannot stress enough the value that unrecorded lien searches
plays in distress asset acquisition.
ProTitleUSA designed an industry leading portfolio analysis dashboard
to fully integrate tax/title results together with municipal liens making it easier for investors to check both results in a combined reporting structure with single exception report for the seller rebuttal process.