Got a question for you dealmakers in here. 6 years ago I bought a park with seller financing. 29 spaces for 130k. I put down 25k. Seller carried balance at 6.5% for 15 years no balloon. It has 23 homes on it with a mixture of ages. During my 4 years I probably brought 6 homes in there. I feel I got a steal at 4k per lot!
Here is the problem: 2 years ago I sold it on ebay to a guy many many miles out of state (florida). He took over the balance of the loan and paid me the difference in cash. About a year ago I found out he abandoned the entire place! Stopped answering phone calls, stopped answering emails, etc. He didn’t even collect rent for about a year now. Well, the original owner is now forclosing on me because I signed the original contract. They are open to proposals from me. Theres only 80k owed. They owned the place 30 years and are in there late 60s with health problems.
Trouble is this guy didn’t pay the water bill or taxes and theres a lien of about 20k that went on the property tax bill. The bill due before March 31st is about 33,000 dollars!. Is there a way to negotiate something there with the treasurer? I know some of the rentals probably need some work. I don’t really feel comfortable dropping 33k. Should I look for private money, family loan, etc??