Empty property I've watched for years. ?????

Question

So a quick story to give the history here. If you want the "LSS" or long story short skip to the bottom.

I have driven past a property for years (12) that was a rental (duplex) and about six years ago it came up empty. The yard was being mowed but that was it. My info in the community said it had been foreclosed on. I never saw a sale sign or paperwork on the windows.......  Having numerous other projects on my plate I just kept driving by.  Now that my projects are drying up I've deecided to look at this property closer. This is where I need BPer's help!  See I started to find out it was still deeded to the same owener since I'lve known about it. So I do the leg work and found that taxes were not paid for years. Then they were paid for a few years and now not paid again. I was able to track down the deeded owner!  He says "its still in my name! I surrendered that property years ago (6-7)".   We watch the tax sales very close in this area and it has never been on it. Sheriff sales? He says he got paperwork a few years back that it was going up on sheriff sale. But then he got info that it was removed.  This was a few years back! Now to the true question....

Skip here for the LSS.

How can I find the name of the lender and try to aquire this property straight from them?

Matt Devincenzo · Answer

If it's still deeded in the owner's name then he is the one that can sell it not the bank. So I would enter into a P&S with the owner take it to a title company and open escrow so you now have an equitable interest. Now the title company will pull title and by so doing know who the lender is and what the payoff is. Then you can start figuring out what you need to do(likely a SS since the fees and interest has built up to quite a sum by now I'm sure). Good Luck.

Mark Bradford · Answer

This lead died. I never could get the owner in FL to respond.

Mark Bradford · Answer

Update:
I'm trying to do what I can to get the owner to sign a purchase agreement with him providing clean title. So I'll see if he jumps on it!  I'll keep you all posted.

Account Closed · Answer

Have your agent explain how closings are done and what everything is called where you are.  For example, First American Title in Indiana offers offers title insurance and "closing services".  Closing services are all the things that need to get done before the deed and the money changes hands.  We call that escrow here.  In some states, it's more commonly done by a closing attorney.

Mark Bradford · Answer

Matt. Thanks for your input.  Your comment didnt load until later so i didnt comment back yet sorry. But what is the escrow part. Who is putting money in the escrow? And why is it getting opened?

Marie. You might be right on the quote. So maybe I need to give Zig the credit. But I do like it. We use that theory in our business as PM's and rehabbers. It seems to work. Ill keep this thread posted as I learn more.

Account Closed · Answer

Ask your agent how it works and how much you have to pay if you open escrow and get a title report that way instead.  Where I am, I can put a contract into escrow and get the title report.  And then title and I work together, with the other parties, to resolve any issues and clear any liens.  If it's a no-go, the seller and I cancel the escrow.  I've never paid for any cancelled escrows or title reports.

BTW, I'm pretty sure your quote is by Zig Ziglar.  Great minds do think alike, but I think Zig is taking all the credit. :)

Mark Bradford · Answer

I dont understand these open or put into escrow comments. So dont know how this works. She might so Ill ask her tomorrow.

Mark Bradford · Answer

Thanks Marie 
I did get i nfo from my realtor that the best option might be to pay for a title search and if it is free and clear go to the owner then. I might just stick the money out for that and see what happens. Every deal is one to learn something from! So you are right knowledge will be gained!

Matt Devincenzo · Answer

Sorry I didn't clear that up P&S, I meant purchase and sale agreement. Basically the same thing you signed buying before only difference is the realtor walked you through "sign here initial here sign sign date" otherwise if you use your state realtors standard contract it's the same to purchase any property.

Open escrow (could be different terms depending on the state) take your signed agreement to a closing atty, title company or whatever is used in your state and have them start the process to close the deal. When they are doing everything they'll start working through the who owes what to whom part and tell the owner and you. If your purchase agreement states the owner must provide clear title then if he can't or doesn't want to(because it's too expensive) then you can walk. The other option is to put say a 30 day option to purchase on the property, you now have 30 days to figure out if you need to adjust your price or walk away.

Obviously the BK complicates things and K. Marie Poe is going to be a better authority on how to deal with that since she has actually dealt with these things before. Like she said though you'll either get a good deal out of this or a great education on how the process works either way I'd follow it through to learn as much as you can.

Account Closed · Answer

Chapter 13 BK is a repayment plan and can go a few years. So that may be why the county isn't foreclosing for back taxes.  But without more info we can't know what the deal is the with the lender.  It sounds like the lender obtained the foreclosure judgment before the BK filing?  Perhaps the judgment was included in BK.  Hard to say without looking at the BK filing.

Regardless, you can make an offer to the owner at a price and terms that works for you, write up a purchase agreement and put it into escrow.  Title and escrow will ask for what they need after they see a title report.   If the debt is greater than your purchase price, or title needs something from the BK trustee to verify the property status, etc. you'll know soon enough. Your purchase agreement can be contingent upon a certain debt amount and/or clear and marketable title.  That way you are not obligated to buy if the deal is no good.

Even if you don't buy it, you'll learn a ton on this one!  Best of success with it.

Empty property I've watched for years. ?????

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