Back taxes owed, 2 weeks till tax sale, how to structure?

6 Replies

We came across a homeowner that has roughly two weeks till her house goes to tax sale. She owes ~$15k which would obviously need to be paid before the tax sale. It's unlikely we could close on the property in two weeks as it's in a trust (inherited the house from her mother) and she can't find the paperwork. How do you suggest we structure this? Get it under contract and pay the back taxes, I get. How do we make sure she either follows through with the sale after we've paid or we can at least recoup the money we spent saving the house? Ideally with some sort of penalty/interest? We'll have our lawyer structure this but I'm curious what you've done in similar situations? 

If she's the trustee, she can simply sell it.  If not, she can't.  Locate the decedent's attorney, he'll have the trust documents.  Obviously there are risks if title doesn't transfer prior to you paying the taxes. You could take a mortgage, but of courses collectng/foreclosing is a different issue.

Originally posted by @Wayne Brooks :

If she's the trustee, she can simply sell it.  If not, she can't.  Locate the decedent's attorney, he'll have the trust documents.  Obviously there are risks if title doesn't transfer prior to you paying the taxes. You could take a mortgage, but of courses collectng/foreclosing is a different issue.

 Great point in regard to contacting decedents attorney, thanks Wayne! She may not have thought of that, I sure didn't. 

Tax sales vary from county to county in PA. IF they are only selling a lien then the tax sale may not be an issue. If they are selling a tax deed then you do need to work quickly. Perhaps @David Krulac could comment?

Which county is the property in?

Originally posted by @Ned Carey :

Tax sales vary from county to county in PA. IF they are only selling a lien then the tax sale may not be an issue. If they are selling a tax deed then you do need to work quickly. 

Which county is the property in?

Ned, it's in Montgomery County. We have it worked out and we'll close before the sale. Should be an interesting one when it's all said and done, I'll post more details once it's a done deal. 

@Ned Carey

PA sells tax deeds, even though there are variances between counties, they're all selling deeds. (with or with liens attached) 

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