House going through tax foreclosure process
I have a very interesting, yet complex case on my hands. I was driving by a property and noticed that it was very rundown. When I got home, I pulled out a pen and paper to send them a letter. Eventually a notice came back from USPS saying that the owner was deceased. When I received that notice, I started doing some more research which is when things got complicated...
I found that the man who lived there was an only child and never had any kids. His mother's siblings didn't have any kids, however there are a few cousins on his father's side of the family who are currently living. I don't think that anyone who is even remotely related to him realizes that the property is in tax title or that it could be deemed legally theirs. Regardless, there was a public notice from the legal firm working with the town, so I contacted the firm and the attorney I spoke with said that the family has the right of redemption during the foreclosure process.
I'm really interested in purchasing the house because it would be a fantastic location to live after it's been fixed up. So here is where I'm looking for a little guidance. I have come up with a couple options of what to do:
- Let the property go to public auction and try bidding on it. The problem with this is that the property is paid in full with a $20k tax lien, so the cost of the property if it goes to public auction will likely be closer to $300k and make this less of a deal.
- Contact the distant relatives to stop the foreclosure process. Take the home through probate and agree on a price (money they wouldn't otherwise have) to sell the home. My hope is that this would be closer to a max of $100-150k after paying off the tax lien and any other expenses.
If anyone has any recommendations of what they would do or any experience that they care to share, that would be very much appreciated.