Flipper/Rehabber · Union Springs, NY · Member since 2019 · 32 posts · 17 votes
Good morning all, I wanted to see if anyone had any ideas with this.
I found a house that could be a decent flip (from the outside at least). It looks like it has been abandoned for years so I found the persons name who has been paying the taxes, then I found out they passed away 6 years ago.
I'm not sure where to go with it now, some other homes I have run into like this are either in a trust or have been transferred to heirs but there seems to be nothing going on. I'm not sure who to contact, does anyone have recommendations on what could be a good next step?
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
3y
@Tim Braun
1. Check with the tax collector, not tax assessor, and be ready to give them the parcel ID or block and lot number.
2. You should learn how to do your own title searches. The skill comes in very handy. Nothing elaborate but just being able to find the most recent deed on a property as well as any mortgages and judgments that attach. These should be found at your county recorder's office.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
I assume the property is owned outright or the bank would have foreclosed. I;d check the county’s website for property taxes and see if/when it will be taken by the county for past due property taxes and auctioned off. I would have guessed 5 years or less so it may have already happened.
Good morning all, I wanted to see if anyone had any ideas with this.
I found a house that could be a decent flip (from the outside at least). It looks like it has been abandoned for years so I found the persons name who has been paying the taxes, then I found out they passed away 6 years ago.
I'm not sure where to go with it now, some other homes I have run into like this are either in a trust or have been transferred to heirs but there seems to be nothing going on. I'm not sure who to contact, does anyone have recommendations on what could be a good next step?
Check with the county assessor and see who, if anyone is paying the taxes. If a bank is paying the taxes, that doesn't necessarily mean they own the house. It may be a legacy loan they still have on the property. But, someone is paying the taxes or it is owned by the county.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
3y
@Tim Braun
You didn't specifically stated but what exactly is the tax status? Or the taxes current?
Did you check for mortgages on the property to confirm there's equity?
I'm a big proponent of doing your research on abandoned properties before reaching out to the property owner. There are several reasons for this but my top reason is to make sure you have all the Intel in case the seller has some mythical objection for selling the property.
One of the more popular ones is that "the bank owns it already". I like to do my research and confirm that the person still owns the property, not the bank, and can therefore still make money on it by selling it.
You didn't specifically stated but what exactly is the tax status? Or the taxes current?
Did you check for mortgages on the property to confirm there's equity?
I'm a big proponent of doing your research on abandoned properties before reaching out to the property owner. There are several reasons for this but my top reason is to make sure you have all the Intel in case the seller has some mythical objection for selling the property.
One of the more popular ones is that "the bank owns it already". I like to do my research and confirm that the person still owns the property, not the bank, and can therefore still make money on it by selling it.
Thanks Ibrahim, this is the kind of information I was looking for.
The taxes look like they are current - is there a sure fire way to check?
Is there a good way to check the equity, or if a bank owns it? I see the taxes are being charged to the deceased, I know that, I'm just not sure what the next layer is - if its in probate, maybe his estate is taking care of it, or his heirs, etc.
My next step is to call the assessor and see if they know anything. Its a "small town" so even if they don't they still might know something or someone.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
3y
@Tim Braun
1. Check with the tax collector, not tax assessor, and be ready to give them the parcel ID or block and lot number.
2. You should learn how to do your own title searches. The skill comes in very handy. Nothing elaborate but just being able to find the most recent deed on a property as well as any mortgages and judgments that attach. These should be found at your county recorder's office.
Ibrahim is right on the money, got to the town Treasurer and go to the county registry of deeds. The employees are extremely helpful and will show you how to look up deeds, liens, mortgages, etc., but don't discount Eliott Elias' answer. Look up the owner's obituary. It should say who he is survived by, then track them down. They may not have ever gone through probate because it costs a few hundred dollars and no one it chomping at selling it. Six years seems like a long time, but if there are 5 or 6 children, they may only see each other once every year or two, and may have not made any decision yet.
Columbus, OH · Member since 2023 · 427 posts · 254 votes
3y
Property could be foreclosed on and bank owner, or it could be owned by surviving family who never bothered to go through probate. Try and get in touch with surviving relatives if you want more information regarding the house. If taxes are actively being paid, it's likely in an estate and there is a bank account covering the mortgage and taxes.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
3y
I would never make the assumptions that several have made.
PROPERTY: Just because it “looks abandoned” doesn’t mean no one cares. I’ve had leads provided to me about vacant houses that turned out to be structures on commercially zoned land that were pending demolition. EQUITY: You’d better do research to confirm there are no mortgage or other liens. If property taxes are being paid, someone cares! TITLE: Abstract and chain out title to determine status. If deeded to a trust, for example, the doc preparer may be an attorney who notarized his/her client and can offer backstory or status.
INTEREST(S): This is where you look for an entrance point by skip tracing record owner’s relatives as potential heirs or beneficiaries
THREATS: List out all the bad things that put the property in jeopardy of loss
OPPORTUNITIES: List out what ways and manners you can create value for your counterparty who may not want to sell but needs assistance that you can provide, at a profit.
Wholesaler · FL · Member since 2019 · 12 posts · 2 votes
3y
Hi Tim,
These are exactly the type of situations we deal with on a monthly basis. Good news is that it's not impossible. Not so great news is that it will require quite a bit of digging in this case. Feel free to message me and I'm happy to help... Like I said, this is our bread & butter.
I would never make the assumptions that several have made.
PROPERTY: Just because it “looks abandoned” doesn’t mean no one cares. I’ve had leads provided to me about vacant houses that turned out to be structures on commercially zoned land that were pending demolition. EQUITY: You’d better do research to confirm there are no mortgage or other liens. If property taxes are being paid, someone cares! TITLE: Abstract and chain out title to determine status. If deeded to a trust, for example, the doc preparer may be an attorney who notarized his/her client and can offer backstory or status.
INTEREST(S): This is where you look for an entrance point by skip tracing record owner’s relatives as potential heirs or beneficiaries
THREATS: List out all the bad things that put the property in jeopardy of loss
OPPORTUNITIES: List out what ways and manners you can create value for your counterparty who may not want to sell but needs assistance that you can provide, at a profit.
^^ Yes, I can't imagine the local government would let the taxes lapse for 6 years, they could be actively being paid by a tax lien investor (not sure how the laws in NY work on tax liens or deeds). But it definitely seems that someone has a vested interest in the property unless the local government has just such a surplus of monies that for a properties taxes to not be paid is not a big deal to them. But I would definitely try to do a title search and see who has liens out on the property.
@Tim Braun How did you find out who has been paying the taxes? thanks
For the counties I have been working around in NY, there is a "SDG Image Mate" website where I can put in the address. I can usually find the link through the state or the county website. It will then show me things like who is the owner, who is paying taxes, assessments, etc.