What about a lean ?

[jastockwell-123]

Texas newbie.
Probly doing this wrong, sorry. Recently tried to buy a property$8,500 (cash). Lawyer found out seller has $68,000 Att. Gen. judgment against her + properties (plural). Property tax appraisal value $14,000+/-including; Well, Septic, Mobile Home. Property resale value around 50,000+. I still want the property. Is there any way to preceed safely. A chance to have the property released if proceeds go to judgment? Should I buy anyway in viw of the price. Anything ? Or am I dead in the water. Please advise as its a really good deal in theory. Right in my price range too, unless it can be forclosed on. Thank you for any advice. It is GREATLY appreciated.

Homeless in TX

 

[FlyingRon]

Unless the thing is such a great deal you don't mind paying off those liens, you should pass.

 

[nextwife]

It is a lien, not a lean.

I HAVE done closings in which the respective Gov't agency agreed to a payoff in which whatever available proceeds existed were payed off to them in exchange for a partial release. These agencies have an incentive to work WITH the closing agent, rather than blowing off an individual closing simply because that property cannot net enough to pay off the ENTIRE lien. Example: someone owns three properties with mortgages on them. The enforcement agency COULD net $10,000 each when sold, but has a lien through judgment of $50,000. They would far rather GET the $30,000 through three sales, than have all end up being foreclosed and get nothing.

The IRS, CSE, State Dept of Revenue have agreed to release the REAL ESTATE from their lien in exchange for net funds (as long as seller gets nothing and isn't virtually giving away the property. So have private creditors. They will likely need to also be shown that the anticipated sale price is reasonable for the current condition and market, and that they are not leaving "cash on the table" by way underselling the place.

So, the owner/their attorney SHOULD be able to negotiate a PARTIAL release in exchange for all net proceeds, after selling costs, by producing an advance mock up HUD for that agency to review and approve. If the owner can work out a partial release, a sale should be workable.