Helping An Owner Redeem His Taxes And Deed Me The House?
Hey board,
Is it possible to help an owner redeem his taxes, then for say....$500 bucks have him deed me the house? (if willing)
This guy bought a house for $70k in 1998 and hasn't paid taxes on it since the purchase....yet he's been redeeming them before each expiratioin period....
The prop. is free and clear and is in horrible shape...totally run down.....two notices of violations for having his lawn over 8 inches are nailed to the door. Needs everything imaginable to make it livable.....
Also it's in Dupage Co. IL, some very prestigious homes are there....in the millions.
Land is very expensive...I would guess that the land alone is about $70 - $90k on this prop. and is only about a 1/4 acre.
What do yall think?
Clif 
[addsig]
This is what I would do, sign a contract to purchase the propety with him. At settlement have the attorney take care of all incumberances with the proceeds of the purchase price. That way you have a clean title and if you want to flip the property you will have no problems with the next settlement company. Having property tax liens doesn't mean the owner can't sell the property as long as everything is taken care of before filing with the recorder of deeds.
Your first outside comment was a great one, with very good advice.
At a RE closing done by your atty. or a local title co., the lawyer or title officer will ascertain that all liens have been paid, so you'll have no surprises and you'll walk out with a clear title. And title insurance, guaranteeing your title.
pbodys chances are this person has money to pay the taxes and knows the system very well. Chances are that this person will cut his lawn before the city or county cuts the lawn and puts a lien on the property for lawn service. Then again this person could have liens already on the property and knows that they don't have to be paid until the property is sold with title insurance.
You could offer the money but it is that type of person that feels the property is worth tons of money.
I'm new to the REI world but have done a bit of research in this area. It seems to me that your first step would be to go to the county records office and find out what leins (if any) are on this property. If the owner doesn't pay his taxes what else doesn't he pay? Check it out first!
There are property tax leins, mechanics leins (from a carpenter or plumber, etc.), and IRS tax leins among others. If you buy this property without getting clear title first then all these leins become YOUR responsibility. At least I believe that is the case in most states. Check with an attorney before signing anything.
If the lein search comes up clean (you said he's been redeeming the tax leins?) then you can be reasonably assured that it is a good deal. If you have to pay back taxes and weed abatement charges from 1998 no problem. It would still be far less than if you purchased a similar home FSBO or through a RE agent. So then you tear down the existing house and build a nice looking one on the lot and sell it for a nice profit.
It helps the current owner (he's obviously in over his head) and you get a tidy profit. If your research turns up no problems (environmental, leins, zoning, etc.) then you've got yourself a winner. Good Luck!
Quote:
On 2003-08-27 20:47, BizInvestorNeeded wrote:
I'm new to the REI world but have done a bit of research in this area. It seems to me <IMG SRC="images/forum/smilies/icon_biggrin.gif"> that your first step would be to go to the county records office and find out what leins (if any) are on this property. If the owner doesn't pay his taxes what else doesn't he pay? Check it out first!
Hi BizInvestorNeeded,
While you are at the County checking it out, keoki will have it under contract for $XX, all liens paid.
Who wins then?
If they don't want to deal, don't waste the time at the County checking it out.
I've wasted a lot of time at the County Offices when the Seller was NOT motivated. Find out NOW.
YMMV,
Steve