Newbie Needs Advise On Possible Deal
I need to get some advise on a possible deal I am trying to structure. The scenario is I was doing a driveby's and came across a vacant beater that had boarded up windows and tall grass. I took the address down and did some research and found the house has been vacant since Early 2001. The woman who used to own it who was never married passed away and the house was in probate. I followed it through probate and found there were no heirs. The executrix was not doing her duties and was releived of her duties. The probate case was closed but I am unable to find out more about the property. I checked public records on it and found that it was purchased back in 1977 for $38,000. then she had a second mortgage on it in1991 for $26,316. And finally there is a mechanics lien on the house for $3000. from a roofing company. I checked tax rolls and there are $7385 in back taxes. The house is in pretty good conditionf rom the outside. It is extremely ugly but has a new roof , siding that needs a spray down, and a few other good qualities. The houses in this are that are comparable go for $80-$90K. I was able to find the attorney who worked the case through probate and get her phone number but am not sure what strategy to go on this one. I want to get it and wholesale it to some one else, but am not sure how to go about doing this. any help from seasoned investors or anyone with some input wouuld be appreciated.
call the attny. and ask what it takes to buy the house, listen to what she tells you and go from there.........km
Thanks for the advise. That is exactly what I was going to do, just thought I would bounce it off a couple heads first. Thanks for the reply. I will keep everyone updated as to what she says after I call her tomorrow.
I don't think the attorney will be too much help, as the executor of the estate has (had) the power, and no longer does if removed. If the probate is really closed, then the attorney can do nothing. I'd still talk to her, but it's not gonna do much.
I'd think the best strategy is to buy the mechanic's lien, then foreclose on it, taking the first out by giving them notice if necessary. Fairly complicated, though you could make some money by buying the mech lien at a discount. I'd be sure that there is enough there to make it worth your while, as you may lose the property to another investor at an auction.
That sounds like a good idea. I was actually thinking about offering the roofer $500 for the mechanics lien. I wanted to give an update though as to what is hapening with this house. Called the attorney, " who since the case was closed two years ago was no help at all." I decided to check the forclosure listings and BINGO. It was listed int he foreclosure listings. Did a little more snooping and found it has been to the auction quite a few times but no one has bought it. They have it way overpriced. They appraise it at 60K and start the bidding at 40K. The house needs work. Should be priced about 25-30K to purchase. the company that is foreclosing is UC lending corp. She had a mortgage in 1996 for 51K. They are foreclosing on her. The mechanics lien was filed in 1997. she passed away in 2001. Checked the civil court dockets and it looks like they filed the foreclosure in 2000. The amount they were seeking was $29941. Since the Mechanics lien was filed before the Lender forclosed does that mean the mechanics lien has priority over the lender or does it mean the mechanics lien is worthless. Thanks for all the help by the way. This is not my area of expertise but it is always fun learning something new. Especially if you can profit from it. Also would it be smarter to purchase from the foreclosing lender direclty and then foreclose on it myself or is the mechanics lient he way to go?