House going to tax sale - negotiate the mortgage and buy before the sale?
I have a house under contract where the owner has been notified by the county that they will begin the tax foreclosure process since he has not made any tax payments in years. In the state of Ohio, once the county forecloses on the property, it will wipe out any other lien that exists on the property. Essentially, the government always has the 1st lien.
There is a mortgage on the property that the owner has not paid on in roughly 3-4 years. Has anyone had success negotiating with these lien holders in this scenario? My pitch would be that I can either buy it at the tax deed sale for what he owes in taxes, or they can write down the lien to pennies on the dollar to cover their processing costs. My thought is that if I can get it off market before the tax sale, I'll be paying less than when it gets bid up at the auction.
Has anyone had any success negotiating in these scenarios? If so, please share. Thanks!