Contract w/delinquent property taxes almost equal to homes value

Contract w/delinquent property taxes almost equal to homes value

Ryan YoungPro Member
Real Estate Agent · Dallas, TX · Member since 2015 · 30 posts · 5 votes

I don't often post on here because it seems most questions have been asked before and I can find the answers without creating a monotonous post. However, today I am stumped and need your help. I found a vacant property in Greenville, TX and the owner now lives in Florida. He had no idea the house was still in his name and assumed it was foreclosed on. Come to find out it appears the mortgage company that had the lien went out of business and somehow the electronic mortgage system issued a release of lien on the property, making it free and clear of any mortgage debt. The owner said he would be happy to sell me the property for whatever is owed on the property which comes out to about $15,000 in delinquent property taxes and code enforcement liens. I thought I had won the lottery until I found out that's about what the property is worth. I was planning on wholesaling it, but I don't stand to make enough money to make it worth my time unless I can somehow negotiate the taxes down. To make matters worse I'm also on a time crunch to make something happen because a demolition order was created by the city today. I have thirty days. Does anyone have any ideas on how to make this turd shine even a little? I feel like I would be doing the city a favor and saving them some money by taking this eye sore off their hands and preventing them from having to spend any money on the property that they will never see. 

I would really like to make something happen even if I only make a few bucks. I think the experience of working a deal like this would be worth its gold merely for the  education of the process. Any ideas would be greatly appreciated, even if it's telling me to walk away... Thank you!

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Ori SklootPro Member
Investor · Berkeley, CA · Member since 2016 · 242 posts · 304 votes
9y

Hey Ryan,

Alas I can't offer great news on this one.  My experience talking with multiple counties in California is that they will never waiver the taxes that are in arrears.  Even if it makes more sense for them to do so.  That said, maybe it's different in your part of the woods.  Seems worth your time, at least for the education, to call the county or even better go in person, and find someone who can tell you whether it's possible.  One possible alternative is to ask them for a payment plan whereby you can pay the amount due over a long period of time.  Then maybe you fix up the place, rent it out and have a spread between the tax payment and the rent.  Just an idea.

Good luck!

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  • Ori SklootPro Member
    Investor · Berkeley, CA · Member since 2016 · 242 posts · 304 votes
    9y

    Hey Ryan,

    Alas I can't offer great news on this one.  My experience talking with multiple counties in California is that they will never waiver the taxes that are in arrears.  Even if it makes more sense for them to do so.  That said, maybe it's different in your part of the woods.  Seems worth your time, at least for the education, to call the county or even better go in person, and find someone who can tell you whether it's possible.  One possible alternative is to ask them for a payment plan whereby you can pay the amount due over a long period of time.  Then maybe you fix up the place, rent it out and have a spread between the tax payment and the rent.  Just an idea.

    Good luck!

  • Ryan YoungPro Member
    OP
    Real Estate Agent · Dallas, TX · Member since 2015 · 30 posts · 5 votes
    9y
    Thanks @Ori Skloot A payment plan could be a good option. I will at least ask & find out what my options are. You can't get what you want without asking...
  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    9y
    A payment plan would be great if they will go for it. I have never been able to get taxes negotiated down though. Talk to the code enforcement and find out what needs to be done to halt the demolition order before you waste time on anything else.
    Rod Hanks Insurance4.9161 Reviews
  • Ryan YoungPro Member
    OP
    Real Estate Agent · Dallas, TX · Member since 2015 · 30 posts · 5 votes
    9y
    Rod Hanks I talked to Code Enforcement and they said I had to go before a district judge to get a release for the demolition order. So, tomorrow I'm going to the district court and the tax office to see what I can make happen. Wish me luck! Thanks for the advice!
  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    9y

    Good Luck!!!! Often the best deals require a lot of work other investors aren't willing to do.

    Rod Hanks Insurance4.9161 Reviews
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