Quit claiming a property then buying it at Tax Scavenger Sale

[Edward Mccracken]

Alright let me know how crazy this sounds and if it’s a workable situation….I found a homeowner that is trying to do whatever it takes to get out of these two houses.

Facts:

-Both properties are probably worth 25k and are coming up for a tax scavenger sale in December.
-I’ve researched both properties on the recorder of deeds.
-Over the past 6 years he filed and messed up 2 Chapter 13 bankruptcy’s with filing the taxes in the BK (I didn’t know you could do that, but you can). The last one is now over and the taxes will finally come to sale in a scavenger sale.

Property 1:
This guy owns at least 6 years around 20k of property taxes. Has a seller carryback loan on the place for 6k that he made 3 payments. The last one on 2006. Breach of contract in Illinois only allows you to take recourse up to 10 years from the breach.

Chase bank released the loan in May. (They didn’t want to foreclose on him)

The place will take a month to get fixed up 4k in rehab costs and rented for 1000 per month.

Property 2:
Owes around 60k for it and owes about 20k in property taxes. The bank voluntarily dismissed the foreclosure a few years ago. Sounds crazy but around here the banks dismiss the foreclosure case or release the loan, then stop paying property taxes so they don’t have to foreclosure and repossess the property. This place is pretty much rental ready at 1,000 per month.

Hers what I want to do…. Have the owner quit claim the house to me, right now. So I can get in there and get the place ready to be rented by the end of the month. The taxes will be coming up for a scavenger sale in December, I will buy them at whatever cost. Well up to 25k. If I don’t purchase them, I will at least collect rents for probably a year.

This situation sounds crazy but any suggestions will help…. 

[Chris Seveney]

If your in Illinois its typically a tax lien state where you bid down the tax lien then after a certain period of time the lien is deeded but your still responsible for all of the back taxes Are you thinking you can get the property for less than the taxes owed on it? Also if you are deeded the properties they will not allow you to bid on them at tax sale. A homeowner cannot bid on their own properties (it is illegal)