What Are The Ramifications If The Ex-owner Forecloses On A Lien On A Property Purchased At A Tax Dee
I am still trying to obtain the clear title to the property mentioned here within.
The previous owner has contacted me and is asking for me to pay off his lien he had on the property and thus allowing me clear title on the property.
The (lien) mortgage listed is for a total of 7 properties (all land lots) for a total of $20,000 and this person wants me to pay off 75% ($14,900) of the (lien) mortgage, even though my interest is for only one of the properties.
His strategy is he will foreclose on the (lien) mortgage and states he will obtain the property after the forclosure through his lawyer, though he has not been clear on how this will be done. Another twist is this guy is the lender and the borrower (under two different company names) on the (lien) mortgage. It would seem a no brainier for him to do this in my opinion, and this creates wonder in my mind as to why he won't just do this and not use it as a threat. So one would wonder the repercussions to him if he did this? From what I understand, he can not obtain the deed from myself without paying off the taxes I have paid in the upset tax sale - please correct me if I am wrong on this.
I do have a lawyer involved but I am very interested in other opinions.
What would be the ramifications if he should foreclose on the mortgage? And, what does that do to his/mine situation? I also am prepared to go back this year and purchase all of his properties (at the tax deed sale - they are all listed currently) and pay off 100% of his (lien) mortgage if need be, as there would be enormous opportunity there. I actually might prefer to do this as it would allow me to obtain 7 land lots at about 40% below market value and would eliminate this individual's capacity to ask for anything as his mortgage would immediately be paid and eliminated. I will do title searches on all the properties in advance.
I understand if I get stuck with it and my price would still be at around 80% of market value and this particular lot is not going to be for profit as it is the lot adjacent my place of residence, but I am searching for information that may prevent that from happening. I am purchasing this particular lot to prevent any new neighbors from building next to me so my time frame is infinite but if I have an out to get this done, I would obviously embrace this.
Thank you in advance for any information you can provide.
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