I have a friend whose property will be going up for auction soon due to delinquent taxes and failure to pay on their payment plan and they have no intention to pull it out of auction. I offered them a sizable amount of cash to handle the matter outside of auction, and to my surprise, they agreed seeing that they were going to abandon the property anyway.
Whats the best way to handle this type of transaction? Quitclaim with disclosure?
You're just buying the house before auction.
His proceeds would have to go towards paying the back taxes with interest and penalties. Anything left over he can pocket.
Yes! This is correct. However, What method to acquire the property would be best?? Lengthy Escrow seems ridiculous... I'm looking for a little bit more detail here...
Length of escrow depends on the financing.
Since you're paying cash, it can be done quickly.
People that don't pay their taxes or their mortgage tend not to pay other things. So, at a minimum, you'd want a title search and possible property survey if there isn't a recent one on record.
Do a purchase agreement. Title search. Property survey if needed. Get home insurance. Title insurance. Go to closing.
Title company will pay the tax bill from the proceeds.
Quit claim doesn't protect you from other people/creditors from making claims on the property.
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