Possible Diamond in The Rough

[Davetta Johnson-Ajavon]

Possible Diamond in The Rough

As a new investor still learning, I set out every day checking out possible properties.

Once home, I do a bit of research on each home. I came across a property, which was vacant. Upon asking several neighbors, the property had been sitting for six years. 

Upon inspecting the paperwork on the door, the notice was basically fines due to vacancy (after looking into the fines, they only totaled aprox: $400. No known address for the owners, who purchased as a foreclosure. 

The new owners put $8,200 in updates (HVAC, electrical, etc.). Deeper searching showed that the couple was military (VA loan) , used a military financial institution. Taxes are current, and being paid for by a totally different mortgage company.

Upon phoning this institution, they say…. The loan is paid in full… Wait! So, why are they paying the taxes on it? Hummm, I’m thinking they are using a tax certificate or something… Not sure how that works, but, if I understand correctly, they pay the taxes for around 7 years and the deed goes to them? They claim however not to have knowledge of the property. 

My search is at a road block. Should I continue my due diligence, since I’m just learning and I can gain a wealth of experience in the process or do I let this one go?

Vacant in its current state it’s valued at $153,000