Tax Liens and QuitClaim Deeds question

[James Wheeler]

in my area all the properties that have structures already have investors that hold the liens... do these investors typically want to forclise or get their investment plus interest? I am considering writing to the landowners telling them about their situations and offering a quit claim deed to get them out of the property... I would pay off the outstanding amounts with the county as I file the deed... is this a good idea?

[Jerry K.]

@James Wheeler Don't worry about hurting the feelings of a lien holder. Does the deal make sense to pursue from a numbers perspective for you? If so, then move ahead.  

You'll never see the lien holder. You will, however, deal with the owner. 99% know they are behind on the taxes. You reminding them of that fact will not start you on a positive negotiating vibe. 

The goal should be to get the owner out of a troubling situation without dehumanizing them and make the deal work for both of you. You'll run into owners who feel they should get market price and above for a building they have not kept up. Many will have been contacted by others offering lowball offers and possibly using scare tactics. They will be downright nasty to you, You can read through some stories here on BP of investors who have been berated by contacting homeowners in the same situation due to other investors being uncouth and rude to the distressed owners. 

You'll need to develop two things; 1) a respectful and effective marketing campaign. 2) a thick skin for when you come across an owner who has had to deal with 5 other "investors" who have tried scare tactics on them and the owner unloads on you and calls you names.

I'm a lien investor and I'm mainly in it for the interest rate return. I fully expect the taxes to be paid at some point. I don't care how they are paid. Other lien investors do look for properties they can eventually foreclose and own. Why would it matter to you if a lien investor is mad?

The group of homes with liens you should focus on are the ones where there is no mortgage, the owners are the beneficiaries of an estate and they never lived in the house. They are less emotionally involved and would be easier to negotiate with. Do a couple of searches using the "Search the site" box at the upper right of the screen. Terms to search are "yellow letters", "estate", "probate" etc. then also look at the bottom of the posts/articles for the links to similar discussions.  Good luck!