Wholesale Habitat Home?

[Boomer Creed]

Hi All,

I recently spoke with a potential seller who is in pre-foreclosure.  The home was a Habitat for Humanity home and is 10+ years old.  She is the owner of record.

When asked if she was aware of any back taxes, she mentioned not being anymore than a year because if she doesn't pay them, Habitat does.

Any body ever deal with a Habitat home?  Anything I should be aware of/stay away from?

Thanks in advance!

[Bill Gulley]

What do you mean foreclosure?

HfH affiliates use restrictive deeds of trust, I know, I helped write them.

It's designed so that a homeowner receiving a home at a reduced market value can't throw it on the market and profit from the donations made in that property.

There is a waiting period, it varies, 5, 7, 10, 15 years before title can be transferred by that owner in a sale transaction. Limitations are often set as to encumbrances, allowing second mortgages drawing out the equity, as any foreclosure would simply be paying off a discounted loan, one made at a below market value, that too can circumvent the intent of the sale of the property. This all may vary from one affiliate to another, but as a non-profit, there are special considerations to deal with. This does not keep  any tax authority from their actions.

First thing to check is the granting deed and see if any restrictions still apply. If not, and the homeowner has the right to sell at market value, then proceed.

If you're concern was from a marketing standpoint, being built as a low/mod income home, that doesn't need to be mentioned and, I'd put most any HfH stick built home up against any other in that price range as to quality of materials and workmanship, each building crew is closely supervised by those with experience, so it should be a sound build. :)