All Forum Posts by: Kristine Ann

Freedom, I think.  They are foreclosing on the property but have delinquent taxes. I definitely wouldn't call it a "nice house."  I know the houses in the area very well and I'm sure it has a flooded basement and it's been flooded for a while. And the roof looks spongy. 

Is it normal for the lender to stop paying the property tax? They paid the most recent but last years is unpaid. It's not worth anyone's time for 100k or 150k, that's for sure. It saddens me because the neighborhood is going to have to watch this house degrade further over the next couple years if it sits in REO limbo.

@Elizabeth Rose Go out and buy a moisture meter.  They are about $30-40 from a home depot or Lowes. 

I doubt if you just rehabbed and changed the roof that you have moisture.  It is most likely an old stain that keeps seeping through.  You'll see this with kids' markers.  Markers will continually seep through layers of paint.  Its almost magical.  Bin is the best way to stop it as @Aaron Hill said earlier.

Unfortunately, if it needs septic and there isn't enough room for a leach field, you won't be able to build a home on it. There's no zoning variance that will change that.  No one's mind will be changed, ever. It's best to leave it and move on.

You're doing great with your MTR!  It doesn't sound like you're ready to buy another property.  You could keep stashing your savings until you are at a point when you feel ready.  I wouldn't buy OOS unless you are wanting a vacation place in a specific area.  Out of town rentals are really difficult.

If the bank stopped paying property taxes, how likely are they to skip the foreclosure auction?  

The property has been vacant for two years.  The electric has been off so the sump pump would not be functioning.  The basement's probably been flooded on and off for that entire two years.  You can actually see from the outside that the foundation looks damp all the time.  The mold must be terrible and I expect that the furnace is completely rusted out.

There's about two inches of moss on the roof and the porch.

Considering that they are going to need to pay 5k in property taxes, get a quiet title, pay a REO realtor, and get the place up to code for showings or winterize, is it possible that they won't show up?

I'm partial to the house because I grew up in the neighborhood.  For anyone else, it's an expensive and gross headache of a house.  It's not worth that much fixed up (210k at the most) and I estimate it needs at least 80-100k of work.  

The bank mortgage balance is 150k.

I would suggest emailing or calling the US House of Representatives office for the congressman/woman for the district your rental property is in or the district where you live.  They have staffers who will help out with matters like this.  They can probably guide you through the steps you should take, make phone calls on your behalf, and do some research for you. 

Don't worry about politics and if you voted for them or not.  If they represent your district, you are their constituent and they will help you.  

Thanks @Scott Trench, very informative

I need to read up on "subject to" verses assumable mortgage.  I was under the impression they were completely different.  I thought with an assumable mortgage, you go through the lender and replace the name on the mortgage.

@Scott Trench I was actually thinking that this would be great for regular, non-foreclosures.  You could offer someone with a 3.5% mortgage 25k over market value so they could use that 25k to cover the high interest rate on their next house.

@Jay Hinrichs Ah, the sub to guys, yeah.  They are very cringe.  "Subject to" is more of a wholesaler thing preying on vulnerable populations, though, isn't it?  This sounds more above board.

I've actually started seeing assumable mortgages being marketed with normal listings recently. I was wondering how it worked in practice.  A 3-3.5% mortgage would be a huge selling point.