Fort Worth, TX · Member since 2017 · 29 posts · 11 votes
I found a seller who's behind on their current taxes and a loan they used to pay previous taxes. They went to sell me their house but I am unsure of what forms I need to buy it cash. Will a title company allow me to move forward with purchasing this property if they owe money on their taxes and a loan? If not what steps should I take to lock in this deal?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
It’s just a normal sale.....assuming your purchase price is enough to cover everything. The back taxes and the mtg balance get paid out if the sellers proceeds st closing.
If you think all these(plus what the owner is willing to walk away with)add up to more than the your purchase price, then you have a problem.
Of course, get title insurance on any purchase.
Chicago · Member since 2018 · 214 posts · 165 votes
8y
Not sure why you even need a closing? What happens if the guy just gives you a quitclaim deed? You record that? Aren't you the owner? This is not legal advice and I am not your lawyer.
I hope you have a clause that lets you out of this. Bite the bullet and pay to talk to a lawyer and a CPA that specialize in real estate. $4-500 is cheaper than a bad investment. Plus if you can’t turn this around, they might be able to find creative ways to help you manage your losses.
Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
8y
What kind of taxes? Are there liens? You will want title insurance and a closing to insure you get good title. Of course, your contract should require that the seller conveys good merchantible title as a condition of closing. The title insurance attorney should be able to guide you on any steps needed to clear title. This is not legal advice, seek your own counsel.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
It’s just a normal sale.....assuming your purchase price is enough to cover everything. The back taxes and the mtg balance get paid out if the sellers proceeds st closing.
If you think all these(plus what the owner is willing to walk away with)add up to more than the your purchase price, then you have a problem.
Of course, get title insurance on any purchase.
Not sure why you even need a closing? What happens if the guy just gives you a quitclaim deed? You record that? Aren't you the owner? This is not legal advice and I am not your lawyer.
NO NO NO no!!!!
You will not have a warrantable deed in Texas, and will have difficulty when you go to sell the property.