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I have a situation. A guy I know is losing his house because he has not paid taxes in 5 years on it. We have 2 months before the tax collector puts it on sheriff's sale. The house is paid off for, but the guy hasn't paid taxes and they put a lien on it for the amount owed which is $100,000. I already own a home, and I would like to purchase this 3 family house for the amount owed in taxes. I spoke to a mortgage guy at Wachovia and he says that they cannot give me a HELOC because I don't have any equity in my current home just bought a year ago. Any who, they cannot give me a mortgage either since there is a lien on it already. I cannot take a mortgage out to pay a lien, the lien has to be paid for in order for me to apply for a mortgage to buy the house. Any suggestions????? I am going to try other banks but I would hate to see this house go to someone else. HELP!!!
I think you are out of luck since no lender will loan you the cash without collateral. And why do you think you can buy it for the tax lien amount? Is that allowed in your area? Here, the tax lien would be put up for auction to investors, and if not repaid with interest over time, then the investor lien holder can foreclose.
5 years taxes is 100k?? That would mean it is 20k in taxes... which be around maybe a couple million in value... but yeah, you are out of luck... nobody will do it for you, paying the tax lien won't give u the home... the bank would do it for me However, I wouldn't pay 20k a year in taxes for a home I didn't like...
5 years taxes is 100k?? That would mean it is 20k in taxes... which be around maybe a couple million in value... but yeah, you are out of luck... nobody will do it for you, paying the tax lien won't give u the home... the bank would do it for me However, I wouldn't pay 20k a year in taxes for a home I didn't like...
The taxes are $13,000 x 5 = 65,000 plus 18,000 interest. The guy is basically giving me the house for the price of the tax lien. If I can pay that off then he said the house is mine.
Quote:
Originally Posted by rjrcm
I think you are out of luck since no lender will loan you the cash without collateral. And why do you think you can buy it for the tax lien amount? Is that allowed in your area? Here, the tax lien would be put up for auction to investors, and if not repaid with interest over time, then the investor lien holder can foreclose.
So have an attorney draft a purchase contract. You get a loan to pay off the tax lien, he gives you a deed, the closing company sells you title insurance and makes sure the current liens are paid in full.
So have an attorney draft a purchase contract. You get a loan to pay off the tax lien, he gives you a deed, the closing company sells you title insurance and makes sure the current liens are paid in full.
I believe this was the point of the OP. He can't get a loan.
I believe this was the point of the OP. He can't get a loan.
True , the banks are very strict and they want 30% down. Any other way of doing it is what I am really asking for. I know the days of no money down are done with unless you have a 700 credit score. I have a 650.
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However, I wouldn't pay 20k a year in taxes for a home I didn't like...
