All Forum Posts by: Mick Michaud

Let us know how the FC goes on this.  Very interested in the outcome. 

The fly in the ointment regarding IRS liens is they attach to the seller's assets, including the property you are purchasing in a contract for deed.  The seller still has the title and the IRS lien will attach.  And the IRS lien is for nonpayment of taxes, not of the mortgage note.  If you buy sub2, then you get the deed upon executing the purchase contract.  The IRS lien will not attach.  However, if the mortgage company calls the note, the seller will have to come up with the funds to satisfy the note, which means you will have to have the funds to pay the seller.  Otherwise you run the risk of the mortgage company foreclosing the note. 

In Ohio, if the HOA forecloses, does the winning bidder take title still subject to the 1st lien or do you get all the money owed you first and then the HOA gets theirs, if any and the overage goes to the original owner? Point being is if you are in first position, then let the HOA incur the foreclosure cost for you and you get any money due you. The problem with this approach is you do not have any control over the auction. You may be able to bid with your lien to drive the price up, but then you may not. Check with your RE atty.

Not trying to get around them, that's the point.  Whoever holds them as to get paid when the property is auctioned or you pick them up yourself for the less than what's owed.  

Anyone here deal in judgement liens in Texas?  I bought several from banks regarding a family that owns 2 commercial properties.  Property is worth between $350K and $500K.  The judgements with accrued interest are around $300-$320K.  

File paperwork with the county sheriff and they go to foreclosure.

This is not new at all. It is a concern to me as a licensed RE broker in Texas. Even if I do a deal for my own portfolio and do not represent any parties to the transactions, I'm very concerned about the liability if something blows up.

The other issue I can see coming is with this government crap about controlling everything in RE transactions concerning home purchasing. We may find this outlawed soon as we have land contracts and much of the owner financing.

Otherwise, this technique has merit.