House is owned by my mother. We've already signed a contract for her to release the title over to me once tax payments are fulfilled. I pay $600 a month in rent which will in return be used to pay the loan back.
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@Rkalynsmith wrote:
House is owned by my mother. We've already signed a contract for her to release the title over to me once tax payments are fulfilled. I pay $600 a month in rent which will in return be used to pay the loan back.
So your mom currently has the title to the property? Or the county siezed the title for back taxes? How does she have ownership interest to collect rent?
@Rkalynsmith wrote:
House is owned by my mother. We've already signed a contract for her to release the title over to me once tax payments are fulfilled. I pay $600 a month in rent which will in return be used to pay the loan back.
Whelp, talk something like this over with Mom. I don't know you from adam OP but I've purchased RE as my form of retirement account and I still learn something new every time I buy a piece, in this case you will have to do the 'leg' work.
Go to your local DCU or bank that you've done business with before, mortgage dept. and find out if they would send an appraiser to your home as you would like to see if you qualify for a loan on it. You can get your own appraisal, but most lending places 'require' you use someone from a list they may have. Be ready to pay for the appraisal (it'll be worth it) Would be between $300 to $500.
Let's go with the figure you threw out there to begin with, the $45k. Say their appraiser confirmed this. Most lenders want, unless you go FHA or some other Government program, 20 to 25% down payment. So to be fair and to not seem greedy, let's just ask for a 30k first mortgage on the property. This should cover the lenders risk in the event that you fail to make the payments, which, contrary to popular belief, is what most of them are concerned about when asking for the down payment. They should be able to get their money back.
I would also ask them to include all closing costs and appraisel into the loan. They might not go along with that, but it never hurts to ask. If not, you will have the money to pay them at closing
Being very honest with your loan officer or whatever the person is called you will be dealing with throughout the whole process, your closing should go something like this.
A check is cut to the proper authority to take all liens off of the property and when that process is complete the Lender will then be sent/assume title.
A check is cut to you for the remainder of the balance.
If you could not get your closing costs figured into the loan, you cut a check to the lender/attorney for those costs.
Everyone signs the papers and the deal is done.
I would then cut my Mom a check for what ever you feel it may be worth. On what she's done for you in this deal and the many years before. Say 3 to 5k? You will still have 15k or so walking money, a monthly mortgage payment less than your rent and are into the American Dream of home ownership.
There may be naysayers that profess that this can't be done and to them I say prove me wrong.
Like alot of the folks on this credit forum that think 10k is a small initial credit limit, I think spending my own money to buy property is a crime. 
Credit can be gone tomorrow-real estate is pretty much forever, they aren't making any more.
There are a lot of details to a purchase like this and if you are willing to give it a try, keeping this thread moving along with your steps, I'll be right there with you. Or you can choose to post you would rather do it by PM and I will keep in contact that way. Choice is yours, but you are in a perfect 'teaching moment' with a 95% chance of making money from buying property and I think you should go for it.
All the Best!
Good advice. Getting a mortgage somehow is the key objective here. If DM has clear title, but for the tax liens, getting a mortgage probably will work.
The unknown is, what is the stance of the county tax department? Are they willing to go through an escrow exchange, which a mortgage issuer will require, or does the county just say: "You pay us a cashiers check, and we will process the title on our own schedule". The county has their fall property auction to look forward to, so cash talks for their purposes right now.