Many investors of tax property from the Commissioner of State Lands consider a “Confirmation and Quiet Title Action.’ They do this to clear away any “clouds” on the title, and make the title marketable.
“But, what if the former owners object? What will happen if they come to court and try to get their property back? Will I lose all of my investment?”
In most cases, the former owner and other “interested persons” never respond to the confirmation action at all. A few may respond to disclaim their interest. Every now and then, someone with a potential interest in the property comes forward to file an answer to the action. We usually see this with liens or judgments against the property, when those parties don’t want to lose their liens.
When someone does comes forward to challenge a confirmation action, the challenge is frequently unsuccessful. Often, the court extinguishes any potential interest in the property because that party did not pay taxes and did not redeem the property. (There are exceptions: IRS, POAs, etc.)
If a former owner or other party can prove that they should get actual possession of your tax property – they should have to pay you for the property. You may not be reimbursed for all expenses, but you need not lose your entire investment, either.