$550K house with $70K tax lien

[Katharine Chartrand]

I am bidding on a "bank approved short sale" through auction.com. I've been offering $400K for a house that is at least worth $550K retai... if it weren't occupied by a cantankerous personality, threatened with foreclosure and burdened with a $70K property tax lien.

I've been putting in my offers through auction.com and a local realtor. auction.com send them through to the bank, which has accepted my offer a couple times. however, the sale has to be approved by the seller. since he has to pay off the $70K property tax lien, he doesn't approve the sale.

My realtor says that the property owner feels it would be better if the bank forecloses because that would wipe out the property lien.

I see that the owner has the house for sale by owner at what i think is a high price ($600K).

I am curious how the bigger pockets community sees this situation resolving itself and is there anything I can do.

>KNC<

[Wayne Brooks]

Just a couple of clarifications:

It's the bank that approves the short sale, not the owner. Don't believe the "bank approved short sale" advertisement, especially from gangsters.com. If the bank has actually approved this price, it apparently doesn't include them paying the $70k tax bill, which hardly qualifies for "bank approved" at that price. This would have to come from either the buyer and/or seller, and the seller likely doesn't have the funds. And, a foreclosure will Not wipe out a property tax lien. You can keep submitting the same offer, but if you're paying cash you may be better just waiting for the foreclosure/trustee auction.