REO Property City Lien Interesting Case

[Sam Leon]

This is pretty interesting to me, a REO property in the city of Hollywood, FL. Listing price 90K. I put an offer on it a couple of weeks ago, they want best and highest, then BoA went under contract with someone else.

A week later the property came back on the market and the description has the added verbage:

BUYERS MUST TAKE EXCEPTION TO TITLE & ASSUME ALL FINES, LIENS, VIOLATIONS, ETC

Turned out the property has a bunch of utility liens, $45 here, $120 there, nothing too alarming.

Then there is an outstanding code enforcement lien from the City of Hollywood.

Description = MINIMUM PROPERTY STANDARDS GROUP FOR RESIDENTIAL

Status = Open

Daily Amount = $350

Accr. Amount = $248,850.00

So, now you have a house listed for 90K, with a lien of 250K and counting.

The bank wants the buyer to absorb the lien. Who is going to pay 340K for a 90K house?

So how do these things ever get resolved?

Will the bank just give the house to the city and say "hey, it's yours, take it?"