Contract For Deed On Property That Has Is Pending Tax Lien Foreclosure

I have an idea, I have this homeowner who owns a building that is facing tax lien foreclosure. He says he wants 70k in proceeds after all the taxes and mortgage liens are paid off.

Cool he owes 238k first mortgage with some reinstatement fees plus about 15,000 in back taxes and about $9,000 in building code fines.

The property also has some housing code violations and some deadbeat tenants who are not on leases that will come with the property.

My thing is this I can't get him to see my logic with offering what the first lien is plus the taxes and penalties plus his 70k add on in a contract. He claims he owes more but he is just gaming to get more money. They are going to ultimately foreclose on him but he may has a few more months.

So I proposed a contract for deed for 70k and I'll give the title company a promissory note as payment due in full if I sell the place.

My thing is I like the contract option better because i can back out if after inspecting I don't feel the property is worth it or even worst I don't have an end buyer to flip it to.

However I can't even send any of my buyer to see the place because its not protected in a contract.

Please advise the best you can.

Honestly, personally I wouldn't touch it. Seems like a good way of getting burned in my opinion.

There's a hell of a lot of properties out there that are easy and clean cut to purchase.

I would stick with them as opposed to dealing in a messy property (that includes deadbeat tennants as well).

I guess it depends how much the house is worth, but at the same time, even if the house is worth $1 mill, if its covered in debts, has bad tennants and the current owner won't agree to your terms, I'd look elsewhere.

With the current state of the US real estate markets "being in the toilet" as one of my auctioneer friends put it, there is plenty of opportunity to make a killing in other areas and leave the messy properties alone.

I say you're asking for trouble.

Just my 2c.

Regards,


Christian

I respect your opinion but there is over 300k in equity that could go towards any defects.

plus commercial buildings for that price is limited in ny