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Updated over 8 years ago on . Most recent reply

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94
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11
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Nate S.
  • Real Estate Investor
  • plattsmouth, NE
11
Votes |
94
Posts

Just got a property under contract and got more problems.

Nate S.
  • Real Estate Investor
  • plattsmouth, NE
Posted

I got a property under contract, they called me needing to get of it. Sellers informed me they're behind backed taxes which is the amount I put the contract under for(Not above the comps calculations max offer). The tax lien hasn't been redeemed. Then finding out later when I was taking pictures of the property, neighbor told me someone cleaned it up before it was extremely bad. Finding out the city gave them notice, cleaned it up and just got off the phone with police and mentioned the property she responded "Ew." Telling me they're glad I'm taking care of it(hopefully) They're now putting a $2k clean up bill lien on the property. The best thing I can think of is telling the sellers they need to come up with $2k at closing. I haven't called Water or Electric company yet, guessing they owe money to them as well. 

Most Popular Reply

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16,988
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Ned Carey
  • Investor
  • Baltimore, MD
13,335
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16,988
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Ned Carey
  • Investor
  • Baltimore, MD
ModeratorReplied

Well if you already have it under contract, the contract will determine if the seller needs to come up with the $2K.. Water may attach to the property but electric bill probably does not attach to the property.

I wouldn't call the elect or water company. That is the title companies job, along with checking many other sources for bills that would need to be paid in order to get clear title. While the owner is likely to be responsible for coming to the settlement table with the money to clear title, From a practical matter that may not happen.  you may try negotiating with the city over the 2K or water. Tell them the owner will not be receiving any proceed from the sale and you will get it back on the tax rolls and into productive use.

  • Ned Carey
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