Hey everybody,

I have come across a potential wholesale deal that I need some advice on, this would be my first wholesale btw. I've found a property that the owner has entirely let go, hasn't paid the mortgage in 10 years and taxes in probably about the same. It was sold at tax auction in Nov. of '17 although is still in the redemption period ($6600 to redeem). The owner said he has not been foreclosed on although there was still about 80k outstanding, however, per the county recorder the mortgage co has issued a "release of mortgage, mortgage only." I have not run a title search yet, and am wondering if this sounds like too much of a mess to get into?

Questions:

1. what happened to the outstanding amount of the mortgage? As far as i can tell it is now debt no longer secured by the property? In the case of a sale would the purchaser be in any way liable?

2. Could the $ for the redemption be paid at closing?

3. Chances are there are other liens against the property, will a title search bring up everything? Or what other due diligence should I be aware of?

The owner sounds very cooperative, and essentially said he would give the property away (potential red flag, I know). The property is essentially a tear down so I still need to run rehab/rebuild numbers to see if it even makes sense as an investment. 

By the way I found this property while riding my bike in my neighborhood and striking up a conversation with a guy who was trimming the very out of control trees in front of the property for the owner.. Peddling for dollars? I'm hoping so.

Any advice much appreciated.

Adam