Real Estate Investor · Member since 2014 · 7 posts · 2 votes
BP,
I have a lead that has $37,336.99 worth of unpaid property taxes. They haven't paid taxes since 1993. The property is worth $163,000. The original note from 1966 of $15,750 is paid off. I have a few questions: how has this property not gone to tax deed sale? There are some liens from the IRS from the 1980's on file. Does this make sense of wholesale?
Investor · Fort Wayne, IN · Member since 2014 · 1k+ posts · 515 votes
11y
@Jon C. this could be a deal, but proceed with caution. I would get a preliminary title report before I went too far with it. Something doesnt seem right.
Investor · Orlando, FL · Member since 2013 · 23 posts · 27 votes
11y
Hi Jon,
They haven't paid the taxes since 1993?! Wow. That is a very long time. I have been buying tax deeds since 2004 and am very familiar with the process. Perhaps there is a reason no one wants it. I would proceed with caution as well. First check out the property, if you haven't already and make sure it is still there (if you haven't seen it already). Then I would do a title search myself or order one from a title company if you don't know how to do it. I would also chat with the neighbors to see if they know what is going on. Neighbors are nosey and they are usually full of information. I would also assume if the house is vacant it might have code enforcement liens from lot cleaning, grass cutting and just all around ugly and falling apart liens. Check with the city or county to find out what the liens are if they have active code enforcement type activities.
Real Estate Investor · Member since 2014 · 7 posts · 2 votes
11y
@Sandra Edmond Yes, thanks for the advice. The property is occupied by an elderly woman, the original owner. Her daughter called me after they received a yellow letter. The daughter has Power of Attorney & sole beneficiary. She is likely to eat this tax bill if they don't get it figured out. I looked through deed history, the county verifies the outstanding balance. There are 4 separate liens from the IRS as a result of some unpaid taxes in the 1980's. They do not reference anything from the 1990's. She may have fallen through the cracks, her court documents show full social security numbers, and she's living in the house without punity. To do a preliminary title search I need to get the property under contract first, right? (Make sure to include the title search in the inspection clause?). Caution is key, thanks.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
11y
Interesting deal...
but up here the tax arrears would only be around 6 years & it would have been disposed of via tax lien auction within 2 years of arrears, regardless of the IRS liens. The latter are often negotiated down by the auction bidder with the understanding that the city will take it back if the liens are not reduced.
I have a friend going through the same. His sister abandoned the parents home, (she alone inherited), for a guy in a single wide in VA. My friend continued to rent it for $875, sending her the cash to pay the PIT.
She was paying the PI but let the tax arrears build to $24,000 & August 2014 he was notified it's going to be auctioned.
With a mortgage balance of $64k & $24k in tax arrears he is now withholding the rents & will then bid on the property scheduled for Aug-Sept 2015 & probably get it for $30k, free & clear.
Real Estate Investor · Member since 2014 · 7 posts · 2 votes
11y
Hey all,
Turns out, in TX (possibly elsewhere) you can defer taxes at the age of 65 or disabled. That's why the house is in so deep, and no foreclosure. The home owner has signed over the tax bill to her next of kin. Wow!
Turns out, in TX (possibly elsewhere) you can defer taxes at the age of 65 or disabled. That's why the house is in so deep, and no foreclosure. The home owner has signed over the tax bill to her next of kin. Wow!
Now there's a way to get back at your kids! ... If I move to Tx, live to 95, .... it might be more than college ;-)