Hi,
Many thanks to this forum for detailed and valuable advises and information.
We found a rehab small park - not much of investment at this time since in produces next to nothing income, but potentially good rehab project, and this is exactly what our conpany does.
After searching on property appraiser I found multiple tax and municipal liens on the property, owners abandoned it and did not pay taxes for quite some time, plus a few abandoned mobile homes will tax liens as well, titles for them held by other persons.
I’m a little confused, things seems to be fixable - pay liens on closing, get new titles for mobile homes, rehab and rent/sell them, and after all, cost of all is pretty reasonable - but I feel like I can miss something - maybe someone for experienced could give me an advice - liens on property is a no-go for rehab investment?
Thank you
A standard purchase agreement is the buyer paying a set price in exchange for the seller paying off all liens and delivering clear title. IE, liens are the seller’s problem, not the buyers.
However, if your likely purchase price is less than the liens that you see on title, you may want to save your time and move onto the next, hopefully less troubled deal.
@Irish Tax liens will most likely be dependent on state laws and protocols. Are the abandoned? That might wipe out the liens. I think TX just passed a law that only allows up to 2 years on the home.
Get clear on what the issue is with the homes and the state protocol. You will really want to get clear on what liens need to be paid and who will be paying them.
Thanks. Will talk to seller
The liens I’m worried about is on the park itself (land), liens that are on abandoned homes are like $100, nothing major.
But I think, maybe in addition to municipal and tax liens owner has some IRS liens on his business and it will apply to land as well.
@Irish Write the contract to stipulate that the taxes are to be paid by the seller through the date of close. Use a title company to close.
Im not sure on the IRS liens if they aren’t attached or recorded this far but i would think the title company and a competent attorney should be able to see you through these issues.