What are my options.

Question

I have a family member that received a house that is worth 375K, they are only offered 200K for the property. The issue is this, the house has 18k in taxes due and they don't wont the hassle of paying the taxes, they don't want to be a landlord because of their ages and they do not want to lose the house. They would love to keep the home in the family. The ask me if i wanted to lease to own, but i would have to pay the 18k taxes due. What are some potential options that I could use to make this a win situation for everyone.

Rick H. · Answer

What does this mean?

That there is still a mortgage but no payments made for 10 years?

Or, that you meant to say mortgage was, in fact, paid off entirely some years ago?

Clear as mud to me.

Ryland Taniguchi · Answer

Why not list it and sell in the mls with a realtor closer to market value?

Rick H. · Answer

Poor people have big TV's. Rich people have big libraries.

If you are going to be the one who "saves the day" then you ought to receive more benefits than lease option.

I say you purchase and get title and possession. Use seller financing (if legal in your state).

You can borrow on the equity with title. I think you can still get a loan just to cure back taxes in priority position (Texas is an anomaly state as to this possibility).

Or, You can use a credit card to pay the taxes. $18,000 @ 18% = $457.08/ mo for (5) years.

Use potential rent as your guide for how much property will support in payments. Structure to begin payments only after any rent prep and rents begin.

Let's see what really happens and if you extend your research beyond just posting.

Steve Vaughan · Answer

If I'm reading this correctly, they have been gifted a $375k debt-free house and don't want to be bothered with $18k in taxes?  Is that right @Anthony Carr?

Short-term, simple thinking will cause them to walk away from legacy-changing money.  They can change their families future with something like this if they are wise.  They will always be what they have always been otherwise.  I would pay the taxes and list the house on the MLS, then invest wisely and change my and my families trajectory for years to come. What do you think they will do?  Buy an SUV and a big-screen, or buy freedom through strategic investments?

Anthony Carr · Answer

They received  the property through the death of their brother who was disable living in the property.

Anthony Carr · Answer

The house not has been paid off for 10 years or more.

Steve Vaughan · Answer

@Anthony Carr- is there a mortgage on the property?  I would certainly 'bother' paying $18k in taxes to protect a bunch of equity.  We can suggest more options if we know what kind of debt is on the property and the circumstances of how they received the house.  Is it inherited for example? Still in probate?    Thanks!

What are my options.

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