Home Buying in Avondale>Question Details

Sharon, Home Buyer in Harlem, New York, NY

I am looking at a Lis Pendens property in Westchester, NY. The owner owes $2M (bank) mortgage and $250,000 to the IRS. Need some advice on acquiring

Asked by Sharon, Harlem, New York, NY Tue Jun 21, 2011

Help the community by answering this question:

Answers

5
As indicated you are going to have to assemble a team if you really want to obtain this property. You will need: a knowledgeable real estate agent familiar with foreclosures/short sales, a real estate attorney to handle the transaction insuring that you get a clear title, an attorney familiar with IRS liens (a real estate attorney might not be familiar with this type of transaction) and how best to satisfy them, your accountant to make sure you're taking advantage of all the tax laws. Lastly, patience. As this is a lis pendens, the mortgage holder might not have decided on just what to do with the property at this time. The owner can satisfy any outstanding balances in payments or make arrangements for a mortgage adjustment at any time. This whole process can take months to satisfy before it becomes available for sale. Check to see what the procedure is in New York.

Good luck.

Charlie
Charlie Chorman - REALTOR
Coldwell Banker Vanguard Realty
Web Reference: http://www.jaxhomesinfo.com
0 votes Thank Flag Link Wed Jun 22, 2011
Follow the advice in the other answers. I believe in NY attorneys close real estate transactions so find one who knows about IRS liens. It doesn't really matter how much is owed to the bank, but how much the bank will
require to sell the property. If the IRS money has to come from the proceeds then the bank will get less. Just be prepared for it to take awhile.

Mark Good
Prime Properties of NE Florida
markgood500@gmail.com
0 votes Thank Flag Link Wed Jun 22, 2011
Sharon,

The Lis Pendens, which is really a public notice of default, is the very first step in the foreclosure process and one is usually filed after the mortgagor is at least 90 days late on their payments but it can take much longer. The speed of the process after the Lis Pendens is served can vary dramatically from a few months to many years with an average of about two years here in Palm Beach County. I am not sure of the numbers in New York. Much of this time line will be driven by the lender with the court back-log also a key.

Not knowing when the Lis Pendens was filed, or what has happened to the property since then, your best bet is to be working with a well qualified Realtor and make contact with the owner. A short sale contract may be your best way to get a contract in front of the mortgagee; even though they are not a party to that contract it will be subject to their approval. Your offer amount is critical and the whole deal will rest on who values the property for the lender; your best deals are obtained when a low valuation occurs.

Find a good agent in Westchester, who is well qualified in short sales and foreclosures, and you will be miles ahead. I have a few great contacts in the area if you would like me to refer someone just let me know.I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Wed Jun 22, 2011
Is the owner represented by a real estate agent and have the owners (or their legal representatives) been in negotiations with the lien holder (bank) and the IRS? And more importantly are YOU being represented by a real estate agent?
0 votes Thank Flag Link Tue Jun 21, 2011
Hi Sharon,

With that kind of debt, it would probably be a good idea to have a successful, knowledgable Realtor working with you throughout your purchase. You'll want to make sure that you're given clear title to the property, so that you're protected with an Owner's Title Policy.

If you'd like, I can refer you to a great agent in your area through our Coldwell Banker family. Just let me know if I can help.........

Take care,
Lynn
0 votes Thank Flag Link Tue Jun 21, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer