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Tax Lien Mortgage?

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Anonymous
Not applicable

Tax Lien Mortgage?



A family friend approached me about possibly purchasing her home. She owns it free and clear; however, she may lose it due to back property taxes (40,000).

Is there a mortgage product that would cover this type of scenario?

Thank you for your time.
4 REPLIES 4
CreditInspired
Community Leader
Super Contributor

Re: Tax Lien Mortgage?

Since she owns it, let’s say, she can sell it for 300K. At closing, she would pay all expenses from her share of the profit, which would be the tax lien; real estate commission, if any; all Seller closing fees, to include atty fees, property taxes, and any other outstanding liens on the property; and any agreed-on buyer closing assistance.

All remaining monies go to her.

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Message 2 of 5
ShanetheMortgageMan
Super Contributor

Re: Tax Lien Mortgage?

Is she able to qualify for a cash out refinance to pay off the back owed property taxes?  What is her credit like and her income situation?  Doesn't take a whole lot to qualify for $40k.  If her credit is good enough she may be able to qualify for a home equity loan, which have very low and often no closing costs.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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Message 3 of 5
Anonymous
Not applicable

Re: Tax Lien Mortgage?

The problem is, she doesn't have steady income, which is why the taxes got out of control. There is no mortgage on the home. I don't think the credit is that great. I think she wants to sell it before it goes to a tax sale -- my understanding is that she would walk away with nothing if that happens.

 

We are looking for a home - which is how the matter came up. I just wasn't sure if a conventional or FHA mortgage would work in this case.

 

As an aside, could this type of purchase qualify for a renovation loan (203K, Homestyle, whatever?)

 

Thanks for taking the time to respond. I really appreciate learning from the experts!

 

 

 

 

 

 

 

 

 

 

 

 

Message 4 of 5
ShanetheMortgageMan
Super Contributor

Re: Tax Lien Mortgage?

If she isn't able to qualify then buying it from her would be possible as long as your income, credit, down payment, etc. qualify. 

 

If you aren't going to live there as your primary residence it'd need to be purchased as a 2nd home or investment property, which are still both are eligible for a Fannie Mae HomeStyle renovation loan (not FHA 203(k) though, as that is only for primary residences).

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 5 of 5
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