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Updated almost 4 years ago,

User Stats

5
Posts
2
Votes
Michael Gonzalez
  • Rental Property Investor
  • Chicago, IL
2
Votes |
5
Posts

Buying an Underwater Property with Liens - Will They Transfer?

Michael Gonzalez
  • Rental Property Investor
  • Chicago, IL
Posted

I am wondering if anyone has experience with something like this. The property is not a short sale. I got under contract and title reported the owner owes the state $556,000 in income and transient tax (the property is a bed and breakfast). She also has a mortgage of $309,000 and maybe (still trying to figure out if she has used it or not) a HELOC of $150,000. So she owes a little over a million dollars and I was going to purchase it for $900,000.

Would the extra $100,000 she owes still be attached to the property even after sale? I asked the title company but they are not very responsive. I plan on consulting with a RE lawyer but it is out of state (Hawaii) and it might not be easy for me to get that line of communication going. I would think the mortgage would still apply, but would state income tax be lien-able against the property after a sale? I would appreciate any information anyone on here has, thanks in advance!

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