Abandoned, Tax Delinquent Property in DC

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Abandoned, Tax Delinquent Property in DC

Rachan M.
Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes

Hello all,

While driving yesterday, I noticed a house with DCRA notices all over it - overgrown grass, unpaid taxes, utilities cut off etc. Quick online research revealed that the owner passed away and property has been vacant for 2+ years. It seems the next of kin lives in the area, but has obviously not paid any attention to the house - no maintenance, unpaid bills, owner's stuff is still inside. The city has not yet put the property up for tax sale.

I really like the house and its location, although it needs a ton of work! I want to look into buying it - what are good next steps for me as a buyer/investor?

Thanks, as always!

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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
Originally posted by @Rachan M.:

Hello all,

While driving yesterday, I noticed a house with DCRA notices all over it - overgrown grass, unpaid taxes, utilities cut off etc. Quick online research revealed that the owner passed away and property has been vacant for 2+ years. It seems the next of kin lives in the area, but has obviously not paid any attention to the house - no maintenance, unpaid bills, owner's stuff is still inside. The city has not yet put the property up for tax sale.

I really like the house and its location, although it needs a ton of work! I want to look into buying it - what are good next steps for me as a buyer/investor?

Thanks, as always!

 You can look up the heirs and contact them to see if they can sell you the property and if nit if they know the status. You can also research title to see if there is a mortgage on the property. Based on your description it sounds like it could be a situation where it may not be worth what's owed on it or the heirs would have sold it. 

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  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    6y
    Originally posted by @Rachan M.:

    Hello all,

    While driving yesterday, I noticed a house with DCRA notices all over it - overgrown grass, unpaid taxes, utilities cut off etc. Quick online research revealed that the owner passed away and property has been vacant for 2+ years. It seems the next of kin lives in the area, but has obviously not paid any attention to the house - no maintenance, unpaid bills, owner's stuff is still inside. The city has not yet put the property up for tax sale.

    I really like the house and its location, although it needs a ton of work! I want to look into buying it - what are good next steps for me as a buyer/investor?

    Thanks, as always!

     You can look up the heirs and contact them to see if they can sell you the property and if nit if they know the status. You can also research title to see if there is a mortgage on the property. Based on your description it sounds like it could be a situation where it may not be worth what's owed on it or the heirs would have sold it. 

    1Reply
  • Eric Teran
    Architect · Alexandria, VA · Member since 2016 · 317 posts · 371 votes
    6y

    @Rachan Malhotra be persistent. There are a lot of properties like this in DC but developers usually get there first. I am sure these people have received some sort of yellow letter to sell the house but don’t let that stop you.

    Do what @Greg Dickerson suggested. If you find out there location I would even swing by and knock on their door.

    I lost out on a property down the street from me by not being persistent. I wrote two letters in a year and the owners lived a mile from me. I thought about knocking on their door and never did. About a year after I first saw the property they put it up for sale and by then it was over my budget to make my numbers work.

    Good luck.

    1Reply
  • Rachan M.
    OP
    Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes
    6y

    Thank you @Greg Dickerson and @Eric Teran!! It is almost certain that the heirs have investors  knocking down their door. But that's ok (and expected), as you said Eric. Can either of you point me to how to do a title search on the property?

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  • Eric Teran
    Architect · Alexandria, VA · Member since 2016 · 317 posts · 371 votes
    6y

    @Rachan Malhotra for DC you can go to www.propertyquest.dc.gov and www.pivs.dcra.dc.gov. You can also go to the city tax assessor website and find out more information there. With that said I don’t know if it list the next of kin if the property has never been officially transferred over.

    DC does not like these houses that are left vacant. If it is considered blighted they want these turned around quickly. I would call The tax assessor office and tell them that you are interested in purchasing the property. They may help you.

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  • Rachan M.
    OP
    Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes
    6y

    Called OTR (tax office) and was told it’s in preliminary stage before being put up for tax sale. Also got confirmation that there are taxes overdue on it. Perhaps find/approach the owner or heirs with an offer?

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  • Rachan M.
    OP
    Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes
    6y

    More on this developing story - the probate process on this house is just starting. Do you all have experience with this? Is it a long process?

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  • Mark Pedroza
    Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes
    6y

    How far along is the probate administration process has the estate gone through? You can contact the heir's but you'll need to find out who the PR (Personal Representative) is.

    The PR has the legal capacity (authority) to sell the property. @Rachan M.

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  • Rachan M.
    OP
    Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes
    6y

    Thanks @Mark Pedroza Legal notice was recently published. I assume PR is different than attorney handling the probate process? Maybe I should try to get a copy of the will from court?

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  • Mark Pedroza
    Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes
    6y
    Originally posted by @Rachan M.:

    Thanks @Mark Pedroza Legal notice was recently published. I assume PR is different than attorney handling the probate process? Maybe I should try to get a copy of the will from court?

    The PR represents the estate, the attorney represents the PR. If the PR doesn't file court-mandated documents or if the PR misses the required court appearance when scheduled the court will recommend a future court appearance, usually 30 days from scheduled appearance.

    This will prolong closing the decedents estate. How far along to close the estate? It depends how thorough the PR is..

    1Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    6y

    The length of the probate process is irrelevant.  If the property will be sold (rather than distributed) the PR will do so during the administration of the estate, not at the end of it. Once letters of administration have been issued, the PR can execute a contract and deed.

    DC court records are available online.

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  • Katt Wagner
    Cocoa Beach, FL · Member since 2019 · 15 posts · 7 votes
    6y

    Rachan, good luck!  It looks like you stumbled across a good investment opportunity!

    Did you look up who the probate petitioner is?  While they can't make a decision on the sale of a property until they have letters of testamentary, you could still reach out and offer options now that way YOU are the first in line when those letters come.   Because of the tax owed on this property, there should be motivation to move forward and sell (since it doesn't seem at this point like they've paid any mind to the property).

    I'd skiptrace the petitioner, give them a call and introduce myself as someone that helps in these situations.  Find out if they've been over to the property (you have deduced already that they probably haven't been over there), and find a reason to set a time for a walk through.  An unkept lawn is a signal to squatters that this house is available - You could build rapport simply by offering to get a lawn guy over there.  

    Bottom line - Find an incentive to earn a walk-through so you can see the inside condition of the house. You'll also have solidified the relationship by taking the time to check on the house for them.  When they get their letters of testamentary, then you can move them forward towards a signed purchase agreement.

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  • Rachan M.
    OP
    Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes
    6y

    Update - I learned today that there's a mortgage on the house that's more than it's assessed value and that it may go into foreclosure. Probably a reverse mortgage, as the house has probably never been sold (DC has no records of any sales). This explains why the heirs aren't coming forward to claim their rights. I might call the mortgage company and ask if they'll take an offer. What do you all think?

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  • Eric Teran
    Architect · Alexandria, VA · Member since 2016 · 317 posts · 371 votes
    6y

    @Rachan Malhotra might? You definitely should. You have gone this far. What is one more phone call? Keep us posted.

    0Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    6y

    @Rachan M. The bank doesn't own the property at this juncture, so calling them would serve no purpose... they can't speak with you about this. In all likelihood this will eventually become REO and listed with a local broker.

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  • Rachan M.
    OP
    Rental Property Investor · Washington, DC · Member since 2017 · 78 posts · 13 votes
    6y

    Thank you so much, you all are awesome!!

    I called the mortgage holder (service company) and the probate attorney, neither has returned my call so far. Given that legal notice was published only 2 weeks ago and the property is underwater, what should I do to maximize my odds?

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  • Mark Pedroza
    Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes
    6y
    Originally posted by @Rachan M.:

    Thank you so much, you all are awesome!!

    I called the mortgage holder (service company) and the probate attorney, neither has returned my call so far. Given that legal notice was published only 2 weeks ago and the property is underwater, what should I do to maximize my odds?

     Shrugh your shoulders and walk away. It's not worth your time, believe me..

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