Tax lien foreclosure property, title has encumbrances.

Tax lien foreclosure property, title has encumbrances.

Topsham, ME · Member since 2016 · 4 posts · 2 votes

Hello 

I am looking at a property that is a tax lien foreclosure property, title has encumbrances. Which means that even though I buy this property the owner has 5 years to come back, clear their debt and repossess the property. making it difficult for the title companies to issue title insurance. Making this property less desirable for investors. 

This property is a distressed multifamily which needs tons of work but at the price point is screaming deal! from what I know from town minutes this house was placed on tax lien on 2016 giving me 3 years left for the owner to comeback.

Is there anything I can do or just walk away.   

0Reply
6 views

Most Popular Reply

Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
8y

I would suggest calling around and seeing if you can get a sit down appointment for an hour with an attorney to discuss the risks you face by going through with the purchase. It'll be money well spent

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    How much debt is on it? How much are you buying it for? How much is the rehab? Whats the ARV?

  • Topsham, ME · Member since 2016 · 4 posts · 2 votes
    8y

    @Michael Ablan Buying $19000 Tax owed is 3600 rehab ballpark 30k to 40k and ARV would be 140 to 150k.

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    A tax owed of $3600 is a scary low amount if they truly have 5 years to settle up on their old debt and reclaim the property.

    Have you confirmed this detail with a local attorney ?

  • Topsham, ME · Member since 2016 · 4 posts · 2 votes
    8y

    @Michael Ablan No I haven't confirmed this with a local attorney. I am not sure how abouts I would contact an attorney or which one. I am fairly new to real estate and tax lien. Im assuming I would have to find a tax attorney and try to get free consultation. The only people I have contact with this information is the people from the town office.  

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    I would suggest calling around and seeing if you can get a sit down appointment for an hour with an attorney to discuss the risks you face by going through with the purchase. It'll be money well spent

Join the conversationCreate a free account to reply, vote on answers and follow this thread.