Short sale $72K down to $1.2 K

[Ned Carey]

In another thread @Samantha M. asked me;

Here is a house we bought for $1,200 and wholesaled for $17,000

As you can see it is in horrible condition, however on the inside the renovations had been started and there were permit inspection stickers. Despite being open to the rain for at least 6 months there was very modest water damage.

The house was in tax sale and the owner wanted nothing for it. Our original offer was $100.00 subject to what the bank would accept.

The bank was owed $72K. We sent the bank pictures and a listing for the house next door which sold for $18K. (I almost got that one in tax sale too but that is another story.) The bank knew about the tax sale foreclosure so they were going to lose their position anyway and were willing to negotiate. The bank countered our $100 offer with $1,200 and we accepted.

As an added bonus the tax sale holder dismissed their case because they bid too much. They probably bid based on assessed value and didn't see the house. So we didn't even have to catch up any taxes. For all those people who wonder about getting tax sale properties for "pennies on the dollar" with no risk, keep in mind the tax sale holder lost about $5K on this property.