What should I do?

Question

I'm trying to buy this house, The houses is behind on taxes . It has 3 bedrooms and 1 bathroom and is approximately 1,148 square feet. The property has a 1 car garage in the back of the residence that is not connected to the home itself. The home does have central air and central heating.

The selling agent is requiring a cash only deal and is requiring the new buyer to pay the past due property taxes of $4,000. The selling agent is also requiring the buyer to pay $500 in closing costs. This home is owned by a Trust, which means that multiple people have to sign off on the sale of this property. Any negotiating that can be done must be approved by all of the people that are on the deed.

The home is currently occupied and the owners are not allowing prospective buyers to see the inside of the residence. We are allowed only to drive by and look at the outside of the property. It has been on the market for over 460 days, so they have not had an agreed on buyer in that time. The listing states that the home does need some TLC, but since we are unable to see exactly what needs to be done, it may be difficult to determine the value of the property.

Mark Elliott · Answer

i agree with doug and ned. if there is a tax lien, then, of course, these people have not been paying taxes. all they want is the money they can get without shelling out any expenses of their own. i would make an offer, close o asking price, contingent upon getting inside, and doing an inspection; then, lower the price based upon what you see. if they will not agree to letting you in, make them a lowball offer based upon the assumption that the place is gutted. as far as the tax lien, if you really want the place, go buy the tax lien from the county. in new york state, you can automatically add a 14% intrest cost onto that which the owners have to pay you when it sells. if they do not pay up in 2 years, you can get a deed to the place. then go wave that in their face and see how quick they move on your lowball offer

Willetta Harmon · Answer

@Mark Elliott @Brent Coombs @Ned Carey @Doug McLeod... Thanks alot guys, I will take everything in consideration...It's like what one of you said about a family squabble, it's just that...YOU GUYS WERE GREAT!!!! THANK YOU

Brent Coombs · Answer

There would already be a Tax Lien on the property, awaiting the County to foreclose (don't hold your breath). If Willetta were to pay those Taxes, the Lien would go away!

If they won't accept an Offer that includes "contingent upon inspection", they must just be waiting to be foreclosed upon. Good luck...

Ned Carey · Answer

Well this may not be a deal. Just because someone Should be motivated doesn't mean they are motivated.

That said put in an offer contingent on getting inside and inspecting. One strategy is offer a price they will accept and then negotiate down when you see the property.

Find out why they haven't sold yet. Is it price? Is it some other family squabble? Give them what they want to address the reason it hasn't sold and get concessions in other areas.

Doug McLeod · Answer

a) do you have the cash (or can you pull it together from family, friends, credit cards, 401k loan, etc. then get a private or hard money loan after closing?

b) if so, assume a near worst case rehab and a painful process to get the current tenants out - and remember to keep the taxes/closing in mind but separate - and make them a lowball offer.

Is there a way to pay the taxes and get a tax lien that would allow you to foreclose at some point to force the issue? These folks don't sound like they are really that desperate to sell and are just waiting for someone to pay them too much money.

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What should I do?

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