Past due taxes on a mobile home


#1

My tenant wants to sell me their home in exchange for late rent. I looked and found they owe for about four years worth of taxes and I’m wondering what happens to that when I go to purchase the home. Does that become my problem or if iit stay theirs? Anybody know.?


#2

In most states, someone (most likely you) will have to pay back taxes. No way that goes away, but i have had some luck negotiating the number down. Some places will waive penalties and interest from past years’ taxes. I would contact tax folks now before you finalize the deal and basically let them know that the current owner has not and will likely not be paying those taxes. You’re willing to purchase the property and help address the tax issue – if they’re willing to be reasonable and negotiate.


#3

Can I ask what is the intent after the tenant sells the home to you (if done):

  1. Are you renting the home back to them or
  2. are they moving out, and you can sell it?

I ask because in some states like OH, if you file for an eviction and then abandoned title, the back taxes get wiped out. In some of our cases this was the best course of action.

If they have not paid taxes for 4 years and cannot pay you, my guess is you do not want them in your community. In that case, why take on the burden of the taxes. Unless the resale value of the home can easily cover the taxes and the past due rent.

In the end its about your local statutes and the $ in the deal.


#4

So I went and looked at the home and basically if they leave it I’ll probably have to pay to have it torn down. It was awful, I can’t believe some people live like that. Thanks for your responses


#5

This is very common. If the taxes aren’t current it’s an indicator that the county didn’t want to foreclose their lien, and there’s probably a reason why.

If the owner transfers title, it will come subject to the lien i.e. the taxes are still due. However, as abandoned property, typically you notify the county and all others to come collect it or their liens are erased and you can acquire title free and clear. To do with it what you wish, including demolish.