Buying murder house at trustee/sheriff auction or prior

3 Replies

So my wife and I are new to real estate in general, both from an investing and personal home standpoint. We have come across an interesting house due to the fact that my aunt and uncle live across the street. In June the owner of this house was murdered there.  Her sister listed it for sale by owner and we toured it. She had an asking price of $75k. The house needs work, for sure some updating and probably a new garage (current detached, one stall is leaning quite a bit). We left it alone as this was far to much for the house's condition. The neighborhood is decent, not a ghetto or anything, and could support 80-90k if this house was remodeled/renovated. The house has since gone to foreclosure and the notice posted on the door indicates that the amount due is $20,016. 

Questions for your are:

1) Is it possible to buy this house prior to auction? Contact mortgage company or sister?

2) If bought at auction there is a 12 month redemption period (Michigan), can someone else redeem it other than the dead person? Maybe the sister?

3) Would you buy/rent a property that someone was murdered in?

Any general advice would be greatly appreciated.

Thanks,

Jake

I am a total Newbie, so Id like to preface this by telling you to take my opinions with a grain of salt.

1.) I can imagine only the owner would have the right to buy the property before the auction.

2.) With the redemption period, I don't think anyone else could redeem the property unless their name is on the title or they inherited it through the murdered owners' will. I've read that its possible for a person to purchase the rights to redemption, but Im not sure if that exists in Michigan.

3.) Buying/ renting would depend on the person. If i were to even consider something like that, i would want a serious remodel. Many people feel that the "essence" of the dead person is still there, which would make selling/renting a lot harder...you better make sure to get a smoking deal

No, not unless you work something out with the current owner can you buy it now.  Whoever is on the deed now I would assume can redeem it however if they don't have the money now, chances are they won't have the money then either.  I am not a superstitious person, if the deal made sense, I would buy the property.  After all, I'm not living there.

Originally posted by @Kyle Penland :

No, not unless you work something out with the current owner can you buy it now.  Whoever is on the deed now I would assume can redeem it however if they don't have the money now, chances are they won't have the money then either.  I am not a superstitious person, if the deal made sense, I would buy the property.  After all, I'm not living there.

 Dead people don't sign deeds.

(ok, maybe I've seen a few fraudulent things come by my desk, but...)

It is possible to purchase real property prior to trustee sale or mortgage foreclosure sheriff sale. 

What IS a problem is the ability to pass title. Hence, someone needs to have standing as executor, administrator, personal rep or trustee (if in a trust). 

The other issue is the ability to cure the loan. Quite possible with all lender contact info in place and cashiers checks in hand.

As to the stigma of a house with former murder crime scene? That's not a problem if you are buying and intend to reside there. If a quick resale, many prospective buyers would be spooked out by the history. Therefore, tiime will be your friend.