Seller Financing with Back Taxes Owed

[Douglas Curtiss]

I have a rather unique situation. I have a property that I obtained through a tax lien foreclosure and I have been attempting to sell it for most of the summer. It is listed for $37,500 on the MLS but the offers we have received are all for selling financing.

The issue is that the property has about $9700 in back taxes that need to be paid off.  Most owner-financing offers are for about 10-20% down which won't pay off the back taxes.  I'd pay them off now myself but don't have that cash available in the account I am using.  

Obviously if someone came with traditional financing or all cash the taxes would be paid off, and this would be a moot point.  But the offers haven't been coming except for owner financing.

Any brilliant ideas?

[Rene Owczarski]

@Douglas Curtiss , I’m curious, why won’t you offer seller financing/terms on the deal, if it’s not selling as currently structured ?
Say you restructure the deal and offer terms at a higher $50,000 sale price, $10,000 down payment, and to make it even sweeter and simpler for the buyer 0% on the balance owed and payments of $400 a month for 100 months.
Then let’s say you then sell the note you created at a discount to another investor for $37,500, then their yield would be about 1.55% on the payments received from the note.
This way, back taxes are paid by the buyer, you get your $37,500 price, buyer gets terms, and an investor gets a discounted note and monthly cash flow. Win all around.