Posted by James on August 09, 2007 at 08:19:11:
When Helpless sub2ed it.
He should have done a title search - but getting insurance is much more costly on skinnier deals like this.
It depends on one’s comfort level to actually paying for title insurance.
Personally, I just check title to make sure it’s clean…then cloud it once locked up.
James
James
back taxes - Posted by bill peeler
Posted by bill peeler on August 09, 2007 at 05:06:28:
HELP! I lease optioned a sfh from a man in Texas, and now have my buyers leasing from me until they clean up their credit. I just got a letter from my seller claiming that the lender has dinged him for $6,000 in taxes that they have paid for unpaid taxess from the sellers who sold to my seller. My lessees are paying 895/month. The lender now wants to increase the monthly payment to $2,000 until the $6,000 is paid off. Any suggestions? How do I salvage this deal? At the moment, I am due $10,000 when my buyers qualify in about 6 months, but now all of that is in jeopardy. Helpless
Re: back taxes - Posted by James
Posted by James on August 09, 2007 at 08:17:14:
Dear Helpless:
Stay in control and you will be fine. Should have checked taxes before you sandwich leased.
Anyway, talk with the lender - you should have got full authorization to do so up front.
In the event that something like this happened, what does your lease-option contract say about it?
In the event it says nothing…talk with the bank and see if they are willing to take smaller payments.
Explain to them that you would like to purchase the house (paying off mortgage) in six months and see if they will make taxes due at the end.
Also, if your lease-option agreements are good, then they probablly say something like your TBs can make everything alright too (not saying they have the cash to do so…).
It’s your show, do what it takes.
Good luck!
James
Re: back taxes - Posted by Max-Va
Posted by Max-Va on August 09, 2007 at 08:13:13:
Sounds like it may be A title insurance claim to me.
The taxes could not attach after the sale. It can’t attach to a property that the tax liability debter does not own. So your sellers title insurance would cover it.