All Forum Posts by: Brendan H.

Agree with both above. "Most" banks will require 12 months seasoning. Also, a lot of banks won't give a HELOC on a rental property, so it is worth committing to calling multiple (20!) banks. Shooting for a bank that will loan on the value & let you cash out from the get-go is a great idea, so calling around to find said bank is key. Search for a bank that does their own underwriting & would consider keeping it as a portfolio loan. I've found banks like that are more "lenient," rather, they're more willing to look at the legit value of the property vs the purchase price. Put together an analysis "portfolio" and take it into each bank; they'll take you more seriously. Keep up the great work!

That's a great find, Trevor! I know a guy that reached out via FB and was able to work a deal that way. The owner had no kidding left for a round the world sailing trip and was off the grid for weeks at a time with no phone... But they'd check their Facebook account at each port so they could post their pics...so the only way to contact them was over social media. I'd say friend request them and open the convo! Never hurts to ask!

That makes sense! Thanks so much, @JayHinrichs

Hey @Mike Lee!  I have been researching this topic recently.  Not sure if you are still pursuing this angle?  Curious to hear about your progress!  I found an FAQ sheet https://www.treasury.gov/auctions/irs/docs/faq8309oth.pdf

It addresses encumbrances.

Thanks @Jay Hinrichs!  I stumbled across an FAQ section and it said just that - any prior liens would remain.  

Do you know how long you have to pay off those previous liens before you get clear title to the home then?  It sounds like you get the Quit Claim Deed, but then the previous owner (or technically any lien holder in a higher position) has 6 months to reclaim the property and they would have to pay your purchase amount back + 20% interest.  

So if I purchased a property at the auction, would I have to wait 6 months, and then could I refinance (if there were enough equity) and pay off the prior position lien holders?  Or would you have to pay those off immediately upon purchasing the property at the auction?  (If that makes sense?)  Thanks!

Hi Zamir Kazi , how did this work out? I am looking at something different, but related - I am considering buying a home that has been seized by the IRS, but wasn't sure if you actually own the house at that point? Or if you still have to pay off the remaining liens and/or mortgages? Hope it worked out for you!

If you buy a property from an IRS tax sale, does that wipe out the other liens? Would it wipe out the mortgage holders? Or would you be on the hook now to pay off the rest of the mortgages on the home? Thanks for sharing your knowledge, Jay Hinrichs !

Has anyone ever heard of the Victoria Mortgage Corp?  I found an abandoned house in my area, and the county records online show that Countrywide Home Loans has "assigned, transferred, and conveyed unto FEDERAL NATIONAL MORTGAGE ASSOCIATION" all beneficial interest under that certain Deed of Trust described below...   It then shows the "Beneficiary" as being "VICTORIA MORTGAGE CORP., A DELAWARE CORPORATION."    

Maybe it has gone back to Fannie Mae and the Victoria Mortgage Corp is the group that handles the process?  I couldn't find the house on the HomePath sales site.  The BBB has a phone # for Victoria Mortgage Corp but it sounds like it went to a fax machine line.

Any assistance would be greatly appreciated!  Hope everyone has an awesome Memorial Day Weekend!

Brendan

This is great! Thanks for opening this forum. We are currently building our first vacation rental in the panhandle of FL and can't wait to learn from BP!