When no one wants buy your distressed property

Question

Hello, So if a land lord makes a mistake and buys a property in a bad area, cant get anyone to buy, it goes to a tax sale or forclosure and no one wants it then- what happens to the property eventually? Whats the cycle? #Newbie Nat

Andy Rumple · Answer

Many unwanted or tax sale properties in Indianapolis which do not

draw a bid end up in the surplus sale. I have included the link.

Indianapolis Marion County Surplus sale info page

Ned Carey · Answer

I can't speak specifically about Indianapolis but generally if it goes to tax sale and no one buys the lien (or deed is a tax deed state) then the property remains yours.

In some areas these properties go into tax limbo. The taxes keep adding up and makes it even less desirable to purchase the tax lien. In Baltimore there are properties with tax assessments of $3000 with tax liens of $50K+

Unfortunately if you simply abandoned the building, you still have a liability risk. What if a kid gets hurt while playing in your decrepit building.

One option is to try to donate it. Perhaps a better option is take it to absolute auction. A good real estate auctioneer can advise you on the latter choice.

Dennis Weber · Answer

This is a situation that goes from bad to worse to worser. If they have tenants and property was included in the last tax sale, I would pay the taxes and sell it for whatever I could get for it. Maybe owner finance it to the tenants.  Owner finance it to a buyer where the rent is higher than the payment.  There are investors in Indy that like war zones. Don't look for a profit here but to limit your losses. If it's a vacant property and ca not be insured then it's more imperative to get rid of at any loss. You may get a tax break if you can find an organization to donate it to.

Anyway, to answer your question, it will eventually show up in a surplus sale but it could take a while and not guaranteed to sell.

Natalie Barber · Answer

thanks everyone!! @Dennis Weber @Andy Rumple @Ned Carey

When no one wants buy your distressed property

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