TITLE TWIST BETWEEN A FORECLOSURE SALE & A TAX DEED

There was a man with two parcels of land.  He had a single mortgage for both, but two separate tax bills.  When the Man failed to pay his mortgage, the Bank foreclosed, but the Bank only paid the taxes on one of the two parcels of land.  

The Bank had the Certificate of Title for both parcels, and sold them to Investor Abe.  At the same time, the second parcel was sold in a tax deed sale to Investor Bea.  Investor Abe thought he was getting both parcels; instead, he only got one.  

Now Investor Abe wanted both parcels.  That’s what he thought he was buying at the foreclosure sale.  The one parcel didn’t really make much sense in the way it was situated without the parcel Investor Bea had purchased in the tax deed sale.  Investor Bea, in an effort to get rid of the property, did a Quit Claim Deed back to the Bank, but the Bank didn’t accept that deed; therefore, the bank didn’t know they owned it, and the property went back into a tax sale.  

What to do?

Investor Abe asserted that the deed to the Bank was never accepted by the Bank.  He got a Quit Claim Deed from Investor Bea, and then he filed a Suit to Quiet Title against the Bank.  That would rebut the delivery, and Abe would have the two parcels, just like he wanted, and would clean up the title in doing so.  Thus Investor Abe untwisted the title and did a good deed.  

From Land Title Talk Podcast on YouTube

October 16, 2025

https://www.youtube.com/playlist?list=PLOp9nP-xxraCK3P9HWVgsdlXvHt1fd6p2

Written by Stephen Collins and CJ Godwin