TenCare Issue

[Curt Davis]

So I have a home under contract to purchase and I have a buyer already lined up to do a double close.  The sellers whom I am buying the home from, it was their parents house and they were not able to work with me until their parents passed away as they were in a retirement/nursing home.   Their parents have now passed away about 3-6 months ago. 

The sellers have one issue and that they just found out today that TenCare basically stated they are owed $122,000 from what I understand is to reimburse them for several years of nursing home care and medication.   The home when all fixed up is worth about $100k, I have it for mid $20's and it needs around $30k in work.  TenCare said something about wanting to auction off the home but now the owners I am dealing with told me that if they are not allowed to sell to me they are going to stop paying the utilities and taxes which could let the home go to tax sale.  

Not sure what to do here in this situation.  I can buy the home as the TenCare issue follows the house.  Will TenCare take the home or will it go to tax sale?  

Any insight would be helpful. 

Thanks