Posted by Ed Copp (OH) on February 09, 2001 at 17:42:22:
Do not do work on property that is owned by others unless you just like to loose your money.
If you want to buy from this slumlord, do this. Make an offer on the property that you want. Make the offer conditioned on the seller providing “owner financing”, and on the owner providing insurable title (now not someday). The seller will then have to pay the church some money so that they will release the property that you want to buy from the lein. Then be sure that the partial release of lein is properly recorded. You will then be ready to do business with the seller. If he is not willing to get the property released, in my opinion; he is not motivated.
Buy title insurance on this deal, no exceptions (my opinion).
Posted by LeonNC on February 09, 2001 at 15:29:04:
I have a seller with many vacant rundown properties. He would like to get rid of them. The seller was deeded these properties upon someones death. I believe they are owned in a corporation. He cannot sell these houses without paying the tax value to a church which has a lien against them.
He proposed to me that if I did the repairs FIRST (he can’t transfer title without satisying the lien) that I could sell the house and keep anything over what we agreed to in the purchase agreement.
Is there a way that I can do the repairs using my cash while keeping the property in his name…and at the same time having a secure position for myself?
Also, I might like to keep one or some and I’m wondering without being on title and doing the repairs if a bank would do a refi or something allowing me to keep the property. Any ideas?
Posted by ken in sc on February 11, 2001 at 12:43:23:
Search the title yourself and see what and who is out there. Then, if it is just the one lien, you buy an Option to purchase the property for a set price. Then you negotiate with the lienholder and maybe get a reduction of the amount to satisfy it now. This method puts you in charge, and leaves nothing for your seller to do (or not do).
The problem sounds similar to that of a a back that has a lien and would allow the mortgage to be assumed. Can you say DOS. The same solution is a land trust. You create a beneficiary agreement to cover your investment and give you control. At a future point they are sold and the proceeds split up. I would consider keeping some for cash flow and selling some to recoup the cash invested. It may depend on if there is a payment on the lien or what your approach is to getting money to the church.