Looking to acquire an abandoned house owned by a holding company

[Joshua Romero]

Good afternoon everyone, 

I am new to the real estate game. I am so happy that I discovered the bigger pockets community. I have found a lot of useful information that has helped me to better understand the real estate industry. I still have a lot to learn, but I am excited. I am looking to acquire an abandoned property as my first investment. The previous owner had no mortgage and passed away over 3 years ago. He was my grandfathers neighbor for many years. He had no immediate family, and no will. I've looked on the local tax assessors website, and from what I can tell the property is owned by a holding company in Nebraska. I was wondering if anyone had any previous experience with this? I am assuming the holding company just purchased the tax lien. Any advice is greatly appreciated. Also, I am located in Lafayette, LA.

[Robert Leonard]

I'm very familiar with the "holding company from Nebraska." It's a huge tax lien investing outfit. They will ask you to sign a document to accept their definition of "merchantable title." Nevermind the legal definition that already exists - it is legal for you to voluntarily accept their definition. Their definition of merchantable title says that you accept that when you buy it, the one title company (that was just created a couple of years ago), will write a title policy on the property. That doesn't mean that any other title company will ever give you a clear title to the property.  

If you are buying with cash, nothing will stop you from buying the property.  However, if you want to buy with financing, the lender will require a lender's title policy and that might be a problem.  Also, if you want to refinance or sell the property, you might have a problem.

I don't have any kind of affiliate relationship with them, but I recommend that you close this deal through Bradley Moreau Title (or another reputable title company) to be certain that you have a good clear title to the property before you buy it.