Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Foreclosures
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago,

User Stats

47
Posts
20
Votes
Teren Cooley
  • Richmond, VA
20
Votes |
47
Posts

Found a seller who's property is set for auction...

Teren Cooley
  • Richmond, VA
Posted

From my last direct mail campaign I received a signed purchase contract for a piece of vacant land in VA. After a little digging I found out that the property was recently handed over to a law firm for collection efforts and eventual auction due to delinquent taxes. I called the law firm to get more details, but they wouldn't tell me how much is owed on the property. They will only give that information to the property owner. I didn't ask but I'm thinking that they will only accept payment from the owner as well. I recall that being the case from a similar previous experience. They did tell me that the auction won't be for at least 6 months and the property can be reclaimed up until the date of the auction if the back taxes are paid off.

I've already tasked the owner with contacting the law firm and sending me an email with a breakdown of what's owed (I assume along with taxes owed, there are also some fees from the law firm, just not how much to expect)  After I get this, I'll be able to decide if it's gonna be a worthwhile investment.

Assuming I decide to pursue the deal, how should I execute it so that I can finance the owner to pay off their debt without the risk of them taking my money, reclaiming the property, and then deciding not to sell it to me.  Would it be possible to get a signed purchase contract from the seller before paying off the debt via a cashier's check or other form of payment, then moving forward with closing after the property is released?  If anyone has dealt with a similar situation, your input is greatly appreciated.  Thanks!

Loading replies...