Does Subject-To Work With Pre (tax) Foreclosure?
The seller is current on his mortgage but about 4 years behind on taxes. He was contacted by his mortgage company who initially agreed to work with him but then said they would wait for the tax sale and take the property and make a profit.
Question: If I do a Subject-To, and this mortgage is already on their radar screen and they're salivating over the supposed big profit they'll make on this liability, do I have a greater risk of "Due On Sale" biting me?
Sounds like there would be more than a slight possibility.
Hi olivetree,
If you dont plan on bringing these taxes current, dont plan on buying the property!
BAMZ
Well.... DUH!
Why don't people use escrow accounts to pay their taxes?
A couple of thoughts:
1. I never use escrow to pay my taxes. This is because it costs 10-15$ a month for them to process my escrow when I have it.
2. If there is a small note on the property then I would indeed take it subject to and pay off the outstanding taxes putting the property into a land trust named for the properties address.
3. If there is money to be made here then I would jump on it! THe worst thing that can happen is that they call the note due and that would probably give you 60 days to come up with alternate financing.
Best of Luck!
yes subject to works for buying pre-tax foreclosures.
There is an added bennefit to buying them this way as apposed to at the auction. There is no redemption period.
Cute response Olivetree . . .
BAMZ
On the subject of escrow, it's a racket! (Except for those who aren't able to manage to pay the total when it comes due at the end of the year.) You pay the mortgage company to take your tax money in advance and use it for a year. Why do I have to PAY somebody to use MY money?!!! Isn't that backwards? There oughta be a law!!!
Law ?? you are paying for a SERVICE. look at your people they didnt have the discipline to do it themselves or they wouldnt be loosing the property to the state!!!