What Would You Do?
I have a rental unit under contract that was taken back by a bank at foreclosure. Title search reveals problems. A church that owned the house way back when gave it to another church, and then sold it to a person a few years later. this person took out loan (they somehow were able to get a loan with title issues) and were later foreclosed upon. The two churches were allegedly somehow affilliated with one another.
Anyway, I am only paying 13K for it (Cash) and it needs about 5-7K for a new interior. New vinyl siding, roof, and windows were done by previous owner. I can get about 450-500 on the open market or 600-650 on section 8. As you can tell by the price its located in an economicallly depressed area, but its on a good block. Only three houses on the block(one of which just sold for 55K it is smaller but newer and in much better shape) State and federal tax credits are available for its "rehab" as it is in the historic registry.
My closing agent says that I should run and not walk away. But I am still interested. The only people who could say they still own it is the other church, but I am thinking they won't be nasty even if they do bring suit. Its a church right...?? The other drawback is that I won't be able to sell or leverage until getting the title straight. Which could take up to 15 years via adverse possession. Right now I could walk with return of deposit. Not sure what to do.
Any thoughts or advice would be greatly appreciated.
If there is a question about title issues, have the particulars currently in the title chain (both churches, and any individuals) sign quit claim deeds, and move forward.
Jeff
I'm not trying to be nasty, cynical, or trash anyone's faith.
However, if you think that you will avoid nastiness, games, or "hardball" because it is a church, you may be making a huge mistake.
Not saying they will be nasty, only that they are at least as likely as other owners to be nasty.
Keep in mind. You would probably be dealing with a church board. Several people, and several personalities to work with and through. Its very possible that someone in the church is an attorney or knows someone that would take the case pro-bono and make it difficult for you. The time you spend fighting for the property could be spent researching and investigating additional property.
Good luck. By the way....can I have the address of the property?
Can you get title insurance?