I've noticed two properties in my town that are going to be auctioned at a tax deed sale next week. No mortgages, but they both have substantial code enforcement liens. I'm currently trying to contact the owner to see about purchasing the properties before the tax deed sale. I know code enforcement liens can often be settled for much less than the stated price, but I'm wondering whether this should be negotiated with the city before closing or after closing. Since I'm in a time crunch, negotiations with the city prior to closing may be impossible, but after closing the city may feel as if they have no inventive to settle since a rich, fat cat investor now owns the properties.
Sometimes it's hard to get a ball park number from them, as to what they typically settle for. Sometimes you can. But, there won't be any actual agreement until After the code violations have been corrected. Go down to code enforcement, ask around nice and cooperatively, and maybe get an idea.
Thanks @Wayne. I figured it might be that way but I wasn't sure. So basically in a situation like this it is a gamble as to what the city will settle for. And no way to figure the cost prior to closing.
I talked with the owner earlier this evening and apparently she lost both houses in bankruptcy. That complicates things even more.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing