All Forum Posts by: Antonio DeFlorio

Not sure in Kentucky, but in states I'm familiar with they are "as-is". 

Thanks to this site, I just got off the phone with REI Guard for a property I just closed. Prices were substantially lower and they were very helpful. They explained all the things regular agents seemed to be fuzzy on. Also found out I was substantially over insuring the property. The other agents had no problem insuring my limits, but would have never paid me out that high given I have so little into it. As a side note, BP has quite the reputation. As soon as I said I heard of REI Guard online they guessed BP.

Wondering if anyone is familiar with landlocked homes and conventional mortgage viability for buyers?

There is a whole story to this, but I'll keep details relevant to the question. I am trying to solve an issue for several homeowners, one of which is trying to refinance. They are burning money trying to buy state land for no reason when I believe there is a better way. I also will pick myself up a great deal in the process (my purchase is cash, but aim to flip).

If a property is landlocked, and banks seem reluctant to fund mortgage or refinance for buyer (have before many times, but more strict now), what exactly does the property need as far as legal access for bank to write a mortgage? Would a deed of neighboring property showing a vehicular easement suffice? Or does the home in question actually need personal ownership of land from home to public roadway? I have a grasp on easements, but none show on deeds. Rural area. Easements by necessity or prescription readily apply here, but would be a more abrasive than necessary approach.

Thanks

I have looked into this some due to a specific distressed property I am interested in. I am by no means an expert, so someone else can chime in. From my research, reverse mortgages are typically backed by FHA. To be reimbursed, a bank must hold the note. This means the bank isn't going to let the property go for less than the balance, because they would take an unnecessary loss.

If someone with more experience knows differently, I'd be interested to hear as well. 

Typically the seller pays the realtor commissions, usually 3% each. You wouldn't pay anything on purchase, but would pay 6% when you sell (3% to buyer's agent and 3% to seller's agent). The 6% comes out of the sale price, you wouldn't come out of pocket. This is the typical scenario.

I don't want to pretend to be an expert. I have just done research into tax sales in MI because they are often vacant land in the northern part of the state, I personally have not purchased via a tax sale.

I'm going to hazard a guess the state uses QCDs because you aren't purchasing property per se, but paying off the tax debt. In exchange, you are given the property rights the state uses as leverage for back taxes. The state's priority is rectifying the tax delinquency, they have little care for deed because the tax debt trumps all liens (except environmental). Regardless who owns the property, the taxes were delinquent and the same process would be executed.

I assume the property was purchased at a tax sale? tax-info.com runs most of the tax sales in Michigan. If so, liens are extinguished unless environmental liens from DEQ. No prior owners can claim rights after a tax sale, all previous title rights are extinguished. Here is a link to tax-sale.info FAQs that may help you, it answers a lot of questions:

https://tax-sale.info/faq

Is it Detroit you are looking into?