All Forum Posts by: Matthew Hull

@Tom Gimer - this is very helpful. Sounds like we are on the right track. We have already reviewed the original code violation report and we are meeting with the inspector tomorrow to review any outstanding/unmet conditions. We've already done rounds with the city and county on whether this could transfer with condemnation attached and none of them had issues with the transfer of title with the condemnation attached. It has come down to the title agency. 

Sounds like our next step is to find out the exact process for removing the notice/gaining approval for occupancy after repairs. Then we will work with the title company to list this special exception and what requirements they might have (notorized acknowledgement, etc) to allow for this. 

As far as financing goes, our lender (hard money) is aware of this condition and is not concerned since this is a flip. 

Thanks everyone. I will keep moving through this process. 

@Jonathan Bombaci right, but it sounds like you had ownership of them? How did you get title insurance with a condemnation notice on the property? I'm planning to follow the same pattern you're describing, I just need to get through the acquisition, which is being held up because it is condemned. 

@Jonathan Bombaci Does the city actually remove the condemnation for you to get clear title? How does that work?

@Ken M. Regardless of what you're thinking about clear title and my lack of understanding, the issue is that the title companies won't provide title insurance with a notice of condemnation. That has to be cleared before they issue title insurance. I'm wondering how others have successfully purchased a property like this. 

@Ken M. This isn't really about the back taxes. It's about the condemnation. 

Michigan.
It isn't in foreclosure. It has been turned over to the county and they have until March to pay the back taxes. Can be remedied through the purchase. 

Thanks, Jonathan! I figured it wasn't an impossible road. We've actually reached out to a handful of title companies and the condemnation is the problem for all of them. It's also in pre-foreclosure, but that should clear with the transaction. 

We are working with the city to review the required work and see what paths forward we could take. 

Would the city lift the condemnation in your situations before closing, or what? What kind of letter are they writing?

Has anyone ever successfully executed a deal to close on a condemned property that is planned as a fix and flip?

I have one I'm working through right now am my my primary road block is that Title won't grant title insurance with condemnation on record (the condemnation is for code violations that can be remedied through rehab). I haven't checked with insurance on this to see if they'd do builders risk on a condemned property, but that might be a second roadblock. My hard money lender understands the project type and is fine with the condemnation status.

I'm curious how others may have structured deals like this to secure the deal while working through lifting the condemnation. 

I think my next step is to get a lawyer to help create a framework for this, but any insight from your experiences would be helpful. 

-Matt

Has anyone ever used Rehablend.com for hard money lending?