So I have a home under contract to purchase and I have a buyer already lined up to do a double close. The sellers whom I am buying the home from, it was their parents house and they were not able to work with me until their parents passed away as they were in a retirement/nursing home. Their parents have now passed away about 3-6 months ago.
The sellers have one issue and that they just found out today that TenCare basically stated they are owed $122,000 from what I understand is to reimburse them for several years of nursing home care and medication. The home when all fixed up is worth about $100k, I have it for mid $20's and it needs around $30k in work. TenCare said something about wanting to auction off the home but now the owners I am dealing with told me that if they are not allowed to sell to me they are going to stop paying the utilities and taxes which could let the home go to tax sale.
Not sure what to do here in this situation. I can buy the home as the TenCare issue follows the house. Will TenCare take the home or will it go to tax sale?
Any insight would be helpful.
Unless the property has already changed title to the heirs i suspect you would have to open an estate and then TenCare would make a claim against the estate. My guess is that kills your deal.
My guess is the first step for TenCare is to get a judgement against the parents. Then they could proceed. I would also assume that unless TenCare does something like that they can't do anything unless an estate is opened. I presume TenCare deals with this kind of issue all the time and will know how to proceed but who knows they may not, or just screw up and this falls through the cracks and you can get the deal. Tax sale is one thing they may not know how to deal with and that may be your best angle.
Any way you cut it I don't think this one is exactly low hanging fruit unless there is a killer margin.
I would number one see how it is currently titled and if still in the parents name i would run it by an estate attorney.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
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