daisy l asked:
there is a commercial property for a sales price of $80,000 but the problem is that the property has liens over 100k..so, sale can not cover the liens…so, owner just wants to get rid of property and is selling it to me on a cash deal for $5k…can i take liens off after that? since it is a cash deal,can i back date the contract? please help!
there is a commercial property for a sales price of $80,000 but the problem is that the property has liens over 100k..so, sale can not cover the liens…so, owner just wants to get rid of property and is selling it to me on a cash deal for $5k…can i take liens off after that? since it is a cash deal,can i back date the contract? please help!
September 26th, 2009 at 6:24 am
If you buy the property you’ll be the proud owner of the liens as well, i.e. you’ll need to pay them.
Why would you pay $5k for a property that already has $20k in negative equity?? That just does not make any sense! The owner needs to pay YOU $20k to take it over and just break even!
September 26th, 2009 at 1:51 pm
You may want to contact the lien holders and negogiate a payoff. What kind of liens are on the property?IRS liens? Tax liens? Government liens? Mechanic liens? You need to find this out first and then proceed. You might be digging yourself a hole with this deal so buyer beware. If it is an IRS or government lien, you might kiss this deal good-bye. If the property has been abandoned a long time or has code violations on it, ficing it up might cost over 80K, assuming that this is the market value.
Charlie
September 29th, 2009 at 6:07 am
Liens do not stop the sale and transfer of the property if you are paying cash.
Before you buy, get an attorney to contact each creditor against the title and get a payoff for each lien. These are usually substantially more than what appears on the title work due to accumulated interest. If you are inexperienced, I would NOT advise researching this yourself…get an attorney.
That way, you can make an informed buying decision…and even if the money was available for you to pay them off, you can’t pay them if you can’t contact them.
I wish you luck.
PS: You’ll need cash to pay off the liens or you’ll need to get a personal unsecured loan…you won’t be able to get a loan with the liens unless you want to pay them to clear the title and then get a loan to pay yourself back..
September 29th, 2009 at 2:31 pm
How much is the property appraised for? How much is the property worth?
If the property is worth more than $180K and you can generate at least $18K a year in rental income, why not finance the purchase yourself and tell the previous owner to get lost.
September 30th, 2009 at 12:05 am
Why would you want to inherit that. Tell the seller you will only buy it once the liens have been taken care of.