$450k equity home going to tax sale. Options??

Buying & Selling Real Estate
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$450k equity home going to tax sale. Options??

Marc D.
Los Angeles, CA · Member since 2015 · 3 posts · 0 votes

Hey guys, quick question for ya..

A relative is letting a home with 450k in equity go to a tax sale this coming April. Taxes will be about $10k on it by that time.

He simply does not want to pay the taxes on it, and means to let it go to tax sale.

He won't sign the home over for any amount of money offered to him. He wouldn't let us pay the taxes on it if we offered.

He MEANS for it to go to tax sale, and to lose the home, and he will not cooperate.

Yes, I understand that it is ridiculous.

The home was given to him in a living trust by my grandmother. 

My mother, sister, and aunt all live in the home.

Is there anything we could do to prevent that from happening? Any way to wrestle the property from him before that? If it does go to a tax sale, is it likely that it will sell for close to it's worth? Or could we maybe come in and pay close to the back taxes on it? Any legal action we, as next of kin and grandchildren, could possibly take?

I'm not sure what the appropriate questions to ask are as I don't know a lot about real estate.. but pretty much any way we could take control of the property and/or keep the home.

I understand that, given that the home is in his name and he doesn't want to cooperate with anything, we probably can't do anything, but I still have to ask.

Thanks in advance!

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Forrest HoldenPro Member
Investor · Duluth, MN · Member since 2015 · 70 posts · 22 votes
10y
I agree, pay the taxes behind his back. Another option is that you could get a lawyer to say that he is not in the right mind set mentally and thus not capable of making decisions to support his own well being. This type of move could destroy a family and is not to be considered except as a last resort for his own benefit etc. Also, there may be another loan on the property or lien that he doesn't want to tell you about and he could be claiming to let it be foreclosed upon to avoid talking about the hard facts. You might be able to get a preliminary title search done if you suspect something is off and find out if he is being completely truthful about all circumstances related to the property. I hate to think of all the worst case scenarios, but when someone is willing to let go of that kind of property, it's best to make sure you know all the facts. Hope this helps...
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  • Rob Beland
    Investor · Leominster, MA · Member since 2011 · 1k+ posts · 589 votes
    10y

    pay the back taxes. He cant stop you from going to City/Town Hall and paying the taxes.

    0Reply
  • Forrest HoldenPro Member
    Investor · Duluth, MN · Member since 2015 · 70 posts · 22 votes
    10y
    I agree, pay the taxes behind his back. Another option is that you could get a lawyer to say that he is not in the right mind set mentally and thus not capable of making decisions to support his own well being. This type of move could destroy a family and is not to be considered except as a last resort for his own benefit etc. Also, there may be another loan on the property or lien that he doesn't want to tell you about and he could be claiming to let it be foreclosed upon to avoid talking about the hard facts. You might be able to get a preliminary title search done if you suspect something is off and find out if he is being completely truthful about all circumstances related to the property. I hate to think of all the worst case scenarios, but when someone is willing to let go of that kind of property, it's best to make sure you know all the facts. Hope this helps...
    1Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 905 votes
    10y
    Something smells fishy. Do a preliminary title search to see what liens exists.
    0Reply
  • Rob Beland
    Investor · Leominster, MA · Member since 2011 · 1k+ posts · 589 votes
    10y

    Paul Harvey comes to mind...

    0Reply
  • Marc D.
    OP
    Los Angeles, CA · Member since 2015 · 3 posts · 0 votes
    10y

    Thanks for the replies so far guys.

    Yes, we pulled a preliminary title report and it is clean.

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Pay the taxes.  It is likely a judge would not allow him to let it go back for back taxes if you claimed he had mental problems.

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  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    10y

    Is he estranged from those living in the home?  Could it be that he just may not want them living there and is willing to risk taking whatever it sells for at auction above the taxes rather than openly evict and sell it to someone else?    Or can he not evict them as part of the trust and is looking to work around his limits to get them out?

    Personally, I'd go speak to an estate lawyer and find out if you can challenge the trust as your grandmother may have left it in trust to him but she may have intended it to be used by your mother and aunt and they may have a right to fight to remain if he is trying to drive them out.  I'd pay the back taxes if an estate lawyer told me it was a smart move, but not if it's a useless gesture and he plans to evict them, anyway.  

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  • Marc D.
    OP
    Los Angeles, CA · Member since 2015 · 3 posts · 0 votes
    10y

    That's an interesting thought, Lynn. I'm going to look into that. Thanks!

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