Tax And Mortgage Lein

HELP!!!!!
Hello everyone, I have sort of a tricky situation here. I have some realestate I'm interested in purchasing before it goes up for tax sale. The problem is that outside of the tax lein, the owner still has a $58,000 mortgage lein on the property that's now worth only about $20,000. Although the owner included the property on a Ch.7 bankruptcy 2 years ago, it's still in the owners name, and the owner would also like to make about $5000 out of the deal. Do I have to negotiate with the mortgage company on this? How does this work? If anyone has any info, I would really appreciate feedback.

Thank you.
vbrew

Comments(1)

  • JohnMichael22nd December, 2004

    Vbrew

    You will have to convince the lender to discount the mortgage by over $40,000 by way of a short sale.

    Based upon your question I would research and study the art of doing a short sale.

    In real estate you have no choice but to negotiate with all lien holders if you plan to purchase for less than the liens on the subject property.

    I would suggest walking away form this deal, if it's only worth $20,000 with back taxes owed and a mortgage of $58,000 and on top of it all $5,000 to the owner I see no deal in this situation.
    [addsig]

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