DIRTY TITLE!?!? What Are Your Thoughts
Hi everyone! first time posting. love the site BTW.
Here is my situation, so bear with me as i try to explain it.
i was contacted by a homeowner about a property that was in her mothers name. her mother is still alive and both of them live out of state and haven't seen the house in like 15 years... she assumed the house was "abandoned" so to say. well, i go by to give it a look and make an offer. turns out somebody is living there!?!? LOL! i talk to the person that is living there and was wondering who he got the house from and he told me he was renting it from a women on the other side of town. i get the women's name that is renting the property out and contact the owners that live out of state. turns out, the lady renting it out is the owner's sister and has been collecting rent for YEARS and hasn't been paying taxes or giving and money to her sister that lives out of state. so she is PISSED! and out of anger with her sister, she practically GIVES me the property for $6K. i send out the contract and turn it into title.
about a month goes by and i hear back, there are 17 people on the deed! wow i thought. so i'm thinking that this will take some time to clear title if it ever does. the person i have it under contract with knows how to get in contact with most of the people on the deed and a few are deceased and most are scattered throughout the US.
so what would you do???
here's the info,
the house is located in south/east fort worth, tx. near rosedale and 820 if that helps any of you texas guys.
under contract for = 6K
tax appr is @ 18.5K
it would probably retail in the hi-30's to lo-40's "it's not the best neighborhood"
at that price it's a great flip or rental i thought.
they owe 1,400 in taxes and will be paying it at closing.
i was thinking of telling her that this is a dirty title and it may take for ever so i can maybe pay her like $200 a month and collect rent from the guy that's living there and just keep renting it out till i get title one day? if ever?
should i just let it go?
i don't have any rentals under my belt yet because i might have to move across country (back to los angeles) in a year or so. it's a 50/50 right now... i'm fighting to stay here 
do you think this is something i could sign over to someone else for a finders fee?
thanks for all your help in advance and if i have left out any major info please slap me into shape... i'm still learning this REI thing. 
Pull Title Report, List all claiments and their date of claim filing.
Stay in touch with your lady and take her leads, promise small sums and start sending out Quit Claim Deeds, to all persons. Clean that title. Are there any mortgages on it.? Any Bonds? What is the shape of the property. Does the tenant have a lease if so for how long. Is the person he is renting it from also on title.
Start rolling on it. Remember you may be back in Los Angeles any day. Send me a picture of the house front side and rear. Check you recent sales in the area without exposing too much to the local Real Estate Community. How far back are the delinq taxes. Anything I forgot.
Lucius
**Please See My Profile**
thanks for your input.
no morgages, no bonds, the tenant didn't know of any lease and the person renting it does not have any ownership of the property. it's an ugly house but not beat up. cosmetic mostly.
i'm at the point where i can start rolling with it so i guess i should get up and do it.
thanks.
taxes are 2 years back.
the tennant loves living there and i was thinking of doing a lease option on it with him if i didn't turn it over to other investors.
i'll send ya a link to the pics
If any of the claimants have a filing date prior to your seller's purchasing the property, they will be covered under her title insurance. Check that out.
If tiltle is correct you have a 1/17 interest in the property like lofous said get going you have a lot of work ahead and you are in this for 6k to boot.
Opppss, thought you had the deed. Any way 1 down 16 more signatures to go. As well your contract is invalid except for her interest.[ Edited by rickomarsh on Date 12/14/2003 ]