What Should I Say To This Homeowner Behind In Taxes?
Hi everyone
I hope someone can answer this question.
I live in the suburbs on the out skirts of Chicago and I found a homeowner on my block who is behind all of last years taxes and behind the first half of this years taxes and the second half of this years tax installment is coming up soon.
The house sits on three 60 foot wide lots with two lots sitting empty next to each other and a very small frame house on the third lot.
This much i do know about the homeowner is that she is a older woman in her late 70's and has lived in the house for the past 51 years, never married and no children.
I would like to try and approach her at her home and explain to her that if she is having a hard time paying her taxes which are very close to being sold at a tax sale i would like to put together a deal that would be a win / win situation for both of us.
So this is my question at this time how would you approach her with a propposal to buy her out so I won't have to go to the auction and have some big tax buyer beat me out of the this great piece of land to build three new houses on?
All advice will be appreciated.
[addsig]
Hey, I'm new at doing deals in real estate. However, from my experience in other areas I would suggest making a straight up offer to her to either buy the whole property or buy the two adjacent lots , possibly with a ROFR on her house when she ultimately wants to sell. I think it might be a mistake to even bring up the fact that you know she is behind in taxes - this might scare her off and she thinks you are just taking advantage of her poor situation. If she is not biting on the straight up offer, then maybe you explain to her what will happen if she continues to miss payments. Remember, I'm new at this but I think that would be my approach. Good luck, sounds like a GREAT opportunity and if you want a partner I'm in
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Good Luck
Be careful. If she plans to move into a state retirement home, the state make take over the property as an asset.
At her age, she might consider moving in with relatives and selling off the property.
You might also, partner with her taking 50% of the property, by you paying the back taxes. Then you both can profit on the out come of a sell or improvement. If she passes away, as the partner, you gain 100% control of the assets. This must be properly written in a contract. Seek a lawyer.
You can also, just sit back and wait. But, it most likely will be several years before the county forecloses.
You might want to know the condition of her health. When you meet, you might open a conversation with "How are you doing, are you feeling ok?"
Then again you may just offer to take the two vacant lots in exchange on paying the back taxes, allowing her to retain her home.