Vacant, $49k in back taxes owed.. Subject-to?

[Anthony Bonaiuto]

Hello fellow BP members! My name is Anthony, I'm new around here. I've enjoyed reading a lot of the articles and the podcasts are amazing! I currently own a Triplex property in Cleveland, and I'm looking for another property to purchase. There is a house on a nice street that has been vacant for a few years, so I looked it up and found out the owners owe $49k in back property taxes. I'm not sure if they've kept up with the mortgage, because it's not in pre-foreclosure as far as I can tell. Seems like it has potential to be a subject-to deal.. I've never done a subject-to, however I'm familiar with the process. Has anybody purchased a property with that much owed in taxes? I'm sure the county will negotiate in the amount owed, as something is always better than nothing. Who would be responsible for paying the back taxes owed? Basically I'm not exactly sure where to start on this, or if its even a feasible deal for a new investor like myself. If it makes sense financially then most likely I'll send a letter to the owners and see if they're interested in being relieved of their burden. If I end up getting the property I'd like to hold and lease it, or potentially do a lease option.. I'll be sure to do my homework and have a through title search in case there are other liens on it as well. This would be my second property so any and all advice is greatly appreciated!! Thanks in advance! Anthony

[James Wise]

I would forget about all that subject-to shenanigans. Subject-to sounds an awful lot like mortgage fraud to me. Get qualified for your own mortgage or bring cash to the table. 

What you would want to do is send them a letter and see if they want to sell it to you. If the back taxes, closing costs and mortgage payments all total up to less than what you are willing to pay for the home it sounds like you got a shot at making a deal happen. If they are all total up to more than what you are willing to pay sounds unlikely as this seller doesn't seem like one that has any money to bring to the table.