Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
Hello everyone, I have a quick question. Earlier today I went to go check out a house that an individual was selling. It's in horrible shape and needs to be torn down, literally! I told him that I would be able to give him an offer once I got home and ran the numbers, thinking that I would be able to get it for next to nothing. Until I saw that he owes $19,000 in back taxes. What can I do? Hopefully there is something, because he's really trying to get it off of his hands. And honestly, I wouldn't mind acquiring get for myself. Any input would be highly appreciated. Thank you
Please correct me if Texas works different, 19k on back taxes I wouldn't even talk to the seller anymore. I would go straight to the county clerks office and see if you can purchase over counter tax deeds. 19k on a property like that tells me that property hasn't been paid in years. So now if the seller doesn't redeem and pay you a certain percentage plus your 19k (state by state I think Texas is around 20%) you will get the deed to the property. Win-Win to me.
@Dean Weltman 19k is a large number, im almost sure it has been on the delinquent property tax list for awhile and no one has bid on it. I would just call the county clerk who can direct you from there.
I spoke to the seller today and found out the he purchased the property two years ago not knowing it had a huge tax problem. He was going to tear it down and rebuild on the property but clearly that was no longer an option for him once he found out the true situation.
I called the County Clerks office today and it was as if I was pulling teeth trying to get info out of them. Honestly, I really got nothing from her... All she told me was that they have been sending notices to the owner for two months now. I asked her how long would it be until they seize the house and take it to auction and she said "I don't know" Smh... So tomorrow I will just simply call back and speak with someone else.
@Dean Weltman I actually have bought 3 vacant lots from the auction and my father purchases homes from there. To answer your question, if the house does not get sold on the first attempt which is called the "Sale" it then goes to another level called "resale" held the following month. If the property doesn't get sold during the "resale" attempt then it goes to "struck off". Once struck off, I believe the city tries to sell it to a housing authority or something. I'm not sure of the specifics but I will find out tomorrow.
Why hasn't this house already been sold at the tax sale if he owes that much money in back taxes? Houses in our area get notices after one cycle of taxes due that if they are not paid, they will be up for sale at the auction in October.
@Benjamin Blackburn well actually i believe if no one purchases the deed and exercise their right to foreclose on the property their self then the owner will keep it. The only others to foreclose would be the bank or private lender if there is a loan out.
Why hasn't this house already been sold at the tax sale if he owes that much money in back taxes? Houses in our area get notices after one cycle of taxes due that if they are not paid, they will be up for sale at the auction in October.
That's the big question I'm trying to get answered. Hopefully I find out tomorrow.
@Account Closed probably because no one wants it. 19k plus the rehab cost. who knows what the avr is. So the profit is probably not worth it.
You're probably right. The tax man went out there and saw that the amount owed them was more than it was worth and they're sitting on their hands waiting for someone to improve the property. No sense taking it now and having to do basic maintenance while you hold it until you can sell for a fraction of what is owed.
Or, the county just screwed up and the property slipped through the cracks... Like ten times.
maybe he would pay you $10,000 to take it off his hands?? then it cost you 9k and you may get water and sewer hookups already and if you could (engineer) use the original footprint your off to the races.. you pay 9k for (in Denver $45k in improvements ++ a foundation or pad...kinda seems like a decent deal from 1000 miles away :)
maybe he would pay you $10,000 to take it off his hands?? then it cost you 9k and you may get water and sewer hookups already and if you could (engineer) use the original footprint your off to the races.. you pay 9k for (in Denver $45k in improvements ++ a foundation or pad...kinda seems like a decent deal from 1000 miles away :)
I doubt anyone would pay to get out of it. Cheaper to let the county take it to auction.
But I agree about the possibility of the lot being worth more than some think. The county lot value means little in some cases. I recently bought an old house in an up and coming area to tear it down. In reality, I was buying the lot, even though the previous owner was selling the house... Really depends on the area.