abandon home for my self!!!

16 Replies

I found a property that I was going to TRY(i say that cause I needed funds) and buy to fix and flip...however life situations  have come up and I need a home for my self and 3 kids with the one on the way...here it goes 3br brick home 2 bath unfinished basement in cook county illinois...back taxes on this property are all that is owed no mortgage it's on 3 property pin numbers which #2 has been sold to a tax buyer that can only be redeemed from that tax buyer for 23k(i have been in contact with them and they have not deeded the property and won't for awhile) pin#1 and #3 has unpaid taxes a portion sold to a tax buyer and the others just need to be paid for. Total of 18k which comes to a total of 41k just in taxes to control the property I need the owner to sign the deed over before I pay any taxes he just wants 5k so total purchase is 46k the home needs 73k in rehab it's currently no livable due to no water heater and a hole in the roof I cannot get conventional lending as I need to do a few steps with the 46k to clear title ( no lender or title company ive called will deal with this property) I need a creative way to obtain this property my partner in business(my father) has the credit and income to help me but we have no 20% at this time he's also apprehensive about hard money and we have no one to lend us the money what can we do?

Care to re-post this in a more readable, cogent manner? Sorry, but I can't follow this.

This is a discussion forum so readers need to skim to get your point. Yours is buried deeper than Texas oil. Suggest breaking it up and making a compelling point. Good luck.

Try a FHA 203(k) loan. It is designed to purchase a home that is in need of repairs.

My credit is bad and won't qualify and my father can't help with that because it would be considered an investment property since he alrready owns a home 203k won't work we also have an issue with the 20% down as well. Let's say that we get control of this property for the 5k could I then get a home equity loan based on the value of the property With ou putting down the 20% and then pay the back taxes and use the rest to rehab?

I think it will need to be made liveable to get HELOC & you would have seasoning issues. Hard money may be your answer then refi in a year? OR, wholesale the deal and earn some down payment for your own housing needs.

I can most likely cover making it livable to get the heloc. When you say seasoning,You mean having lived in the home a while before they consider the loan? So even with no mortgage you still can't get the loan based on the value? I would do hard money but they will not loan to us because weve never done a deal before and they don't think the deal is profitable

Given the status of the tax issues revolving around the property it's highly unlikely you can get anyone to lend on the property, including HMLs.

A lender would be exposed to tax issues prior to making a loan, and any redemption issues after making the loan. In addition, it's a given a HML will require a down payment, it may not be 20% if you can prove you have the experience to complete the improvements (not to mention the tax issues which I think make it a non starter for a lender).

Alternatively, your best solution to acquire this property is to find a partner to buy this property with you or a private lender.

yes I agree I've been looking for a private lender and have had no luck it's unfortunate that this home will most likely be left to the way side if I cannot find the help I need to aquire this property I look at it as a win for everyone if I be the loan to buy and rehab you already have a buyer..but I just don't work that way

@Mike Chubb

Trying to parse the scenario:

3 properties, 2 owners, Overdue taxes on a major rehab, the total deal will cost at least 5 times the cash you have available and you have no credit? 

One question: what will the property be worth once the rehab is complete? You mentioned it will take about $120K to do the deal.  Unless the house will be worth more than $170K when finished, you will have a hard time getting an investor interested in helping with this.

it's 1 sfh 3br 2bath brick with a basement corner lot that has 3 parcel numbers 2 parcels have been sold to taxes they all can be redeemed totaling 41k to make sure that I have total control I have to pay the owner 5k for deed totaling 46k to control .the rehab is 73k (this is one contractors SOW only) the entire purchase and rehab is 120k the comps in the neighborhood sell for 152-160 unfinished and dated this ARV WILL sell for 216 to 226

@Mike Chubb

Work on the credit. Your going to need cash, credit, or a combination of the two to have longevity in this game if you plan to hold property.  If you are looking to wholesale, you could probably make it work with sub par credit.  Clean the credit up is step one in my opinion, or you could be the tenant/buyer in a rent to own.  You can kill two birds with one stone.

Can any  investors here help me with just the 43k purchase? I can get the rehab money later but I don't have both I will fix this home myself and live in it it's not a fix and flip

my plan is to purchase it get it livable so that it can qualify for a conventional loan 

@Mike Chubb

Since you are intending to owner occupy the property it is going to be extremely difficult for you to find a private lender/hard money lender to finance the deal.  Dodd Frank and the extra time needed to foreclose on an owner occupant has made most shy away from such deals

even if I refinance as a primary? cause thsts my intention it will be my home not for an investment 

@Mike Chubb

Even though your intent in to refinance in 6 months, the person lending you the money will not be able to put a balloon payment in the loan

Could I but the investor on the deed with me?

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