Real Estate Investor · Lubbock, TX · Member since 2008 · 182 posts · 10 votes
A buyer recently paid off her contract for deed which was held by me. She cannot/has not recorded the deed due to the fact that property taxes are owed by her and in Genesee County, property cannot be conveyed if property taxes are owed. I want the property out of my company's name. The county continues to send tax notices and threats to me. I promise that I'll never do business in MI again, but what can be done to fix this or do I forget about it and rest well?
I would agree with you @Andy Mirza. @Mike Mitchell, if you lose the property to tax sale, is that really a problem? At this point, the borrower should be motivated to pay the taxes if she wants the property. I see why you would want to be out of the picture but I would not be in a rush pay the taxes myself.
@Tracy Z. Rewey I have also considered adding an interior inspection as one of the conditions to do a conversion, even if we pay for it.
By way of an update to my story above, we ended up advancing the taxes (again) as I just learned that the borrower, who has been a consistent payer, recently lost her job. At least now we can record the cancellation, deed, and mortgage.
Thanks for the update on your deal! Interesting strategy on the interior BPO. We have done that to substantiate the increased value after a buyer has made big improvements if we are looking to resale the note. The buyer's incentive is to get a copy of the report at no cost for the hassle of having to let the agent or appraiser in. It can also help motivate them to refinance. I've not used the interior BPO strategy on a conversion. You have my wheels turning now.