Abandoned Property - Owner Found, what next?

[Latisha Douglas]

I am looking at two abandoned properties that are next to one I just purchased. I did some digging and have info. I am looking for advice on next steps. I’m getting conflicting info and don’t want to make a wrong decision.

House #1 – Spoke to owner and he does not want anything to do with the house. His first mortgage is way more than it’s currently worth. I was thinking of having him sign it over to me but he owes too much. I spoke to the bank and can’t get info without third party authorization. Can I ask the owner to do this without hurting my chances? Goal is to purchase at the 30-40k range. It’s in awful condition.

Assessment Info: $38,487. True Value: $ 56,800. Current condition (my opinion): 30k-40k max

• 1st Mortgage for 160k recorded on January 1/24/07
• 2nd Mortgage – for 40k
• 2 lis pendens issued but released, latest release 2017
• A Water Lien dated 11/06/09 $830.00
• A Water Lien dated 5/19/11 $ 711.83
• A City Tax Lien dated 5/03/18 $ 5,719.40

#2 – may have owner info but have not called yet. No current mortgage lis pendens so can I really get the property for the price of the tax liens? What do I ask the owner? Goal is to purchase at 30-40k it’s also in awful condition.

Assessment Value: $37,900. True Value: $ 108,700. Current condition (my opinion): 30k-40k max

• A Mortgage recorded on 1/1994 for $71,250
• A Lis Pendens in favor of Bank recorded on 3/24/10
• A Judgement Lien to Hospital dated 2/15/06 $ 1,300
• Assignment of Tax Liens to TLOA, Inc dated 7/2016
• Assignment of Tax Liens to TLOA Acquisitions dated 12/2016
• An Assignment of Tax Liens to TLOA Acquisitions LLC Series 8/2017
• Assignment of Tax Liens to TLOA of CT LLC dated 12/2017
• Assignment of Tax Liens to TLOA Servicing LLC dated 12/2017
• An Assignment of Tax Liens to TLOA of CT LLC dated 6/2018
• A Lis Pendens in favor of TLOA of CT LLC on behalf of the city, dated 12/2018
• A City Tax Lien dated 5/16/16 for $ 1500 (2014)
• A City Tax Lien dated 4/26/17 for $ 3,200 (2015)
• A City Tax Lien dated 5/03/18 for $ 2,700 (2016)

Thanks in advance. I would LOVE to grab these two properties and have 3 on one block.

[Josh Carr]

@Latisha Douglas  On the first property you can talk to the owner, however, if there is an opportunity it would be a short sale offer subject to the banks approval.  It sounds like they may have defaulted on the mortgage which is why the taxes defaulted in 2018.  

On the second property you mentioned it would be a Judicial foreclosure even if you are doing a tax foreclosure.  To get this started contact TLOA (number will be on the tax collector's site) buy out TLOA's position if they have not started filed a foreclosure suit per their tax lien position.  If TLOA is willing to assign their tax liens to you, you can file for foreclosure and if all goes well- acquire the property.  If the mortgage is still in effect again the bank will have their say first as to whether or not they will pay off the taxes prior to foreclosure as a result due to taxes as they have the most to lose. Then again, once they have been notified if they do nothing (paying off the taxes to secure their position) you are in a position to acquire the property for just the back taxes.  If it is on the books long enough the City will hold a tax sale for delinquent taxes and the mortgage has no standing. 

Let us know what you decide to do and how it turns out.