Deal OR no Deal???

Question

I recently came across a motivated seller who inherited a property from her mother. A few months ago she owed $17,000 in back property taxes but it increased to $32,000 this month because her mother's exemptions were removed from the property. The property is in very bad condition so I'm really just interested in the land. But with the recent increase in property taxes it looks like the taxes are more than what the land is worth. Is there anyway to negotiate and get the taxes lowered? If so, who should I talk to?

Sakeena Andrade · Answer

Dion DePaoli There probably is more to the story than I was told. But I will definitely have her speak to an attorney. Thanks for your input.

Dion DePaoli · Answer

Sakeena  Andrade there is more to this story, I would bet on it and I don't bet often.

I noticed in another thread you asked about CoreLogic, I answered there and asked if this is the same property.

If this went through Probate the daughter should have been made aware of the liens and liability of the property.  Assets from the estate could have been used to extinguish the liens.  The story, without background sounds a little "loosey goosey".  Title into the name of the daughter could be viewed as creating unnecessary liabilities.

I think you have to start from the beginning on this and work step by step through it.  All messes can be cleaned up.  A retro increase to the tax rolls should not have happened.  I dunno, that is a big fat issue for me here with any Probate attorney, if one is involved.  A potential way to reduce the liability is check into that.

The portion of not taking the property because of some exemption.  I would be curious to know what that is.  Unpaid taxes are unpaid taxes, that matter trumps most other matters.

If the mess stems from Probate and the way it was handled, she might be able to seek an attorney to ask for a stay on the sale in order to try and sort it out.  Through that you might be able to reduce the property taxes.

I am just thinking out loud as the details come in.

Sakeena Andrade · Answer

Joel Owens thanks!

Joel Owens · Answer

Have a  commercial broker that is local determine the lots highest and best use and quick sale value.

Sakeena Andrade · Answer

Joel Owens the lot was used as a residential lot, but it can be used as a commercial lot as well. But how do I value the lot if it can be used as commercial or residential?

Sakeena Andrade · Answer

Dion DePaoli correct taxes haven't been paid since 2005. And I'm in El Paso, TX.

It was hard for me to fathom that this house had not been taken also, but I was told it wasn't taken because of the exemptions that were on the house when the mother was alive.

I believe the property went through probate, but I'm not sure. She worked with a lawyer to get the property in her name.

And yes, she has title to the property, but it will go to a tax delinquency sale soon if the taxes aren't paid.

Joel Owens · Answer

I am surprised a tax lien hasn't been already sold off for those years.

The money is owed to the tax lien certificate holders.The city and county needs the money to function each year for the tax revenue.So they sell of the tax certs to get money today.

A guaranteed return is then given to the tax certificate holder so there is no negotiation on the balance.After a certain time they can file for a foreclosure tax deed.

Things do vary by state in how they operate with tax deeds/certs etc. so your state might have some quirky rules and regs.

First see if the property is in the city limits and if not you are just dealing with the county taxes.

The structure will cost money to tear down and haul away.You need to then determine if you can sell as commercial or a residential lot.

Sounds like there is no money here to be made.

Maybe quit claim to the neighbor for nothing and let them handle the property taxes??

No legal advice

Dion DePaoli · Answer

7 years.  So no taxes have been paid since 2005/04.  You have not mentioned what state the property is located in.  Depending on the state a tax certificate can be sold where the buyer of the certificate earns an interest rate on the unpaid tax amount.  In other states they do not do tax certificates and they do tax delinquency sales.

It is hard for me to fathom how this would have made it through the boom real estate cycle without being taken for lack of taxes being paid.

It is of merit to have a better understanding how the property passed to your friend.  Was the property in a trust or just her mother's name?  Did this go through probate?

Have you checked to ensure your friend actually still has title to this property?  How did your friend take title to the property?

Sakeena Andrade · Answer

@Dion DePaoli  For 7 years the taxes were not paid on this property which brought the bill to $13,935. Each year the taxes were not paid penalties/interest were added to the bill which totaled $18,253. So the bill adds up to $32,188.

Dion DePaoli · Answer

Sakeena  Andrade how many years is "some years"?