Commercial Property Tax Sales
Started a new business this year and we are ready to expand. We have found a piece of property that would work great, just as it is. So far we have found out that the LLC company who owns it took bankruptcy of $50 million in debt, and then reorganized their business (same line of work) gave it a new name and re-opened, only to close the doors a year later. The building sits empty with furniture and all and was in the enterprize zone. It is currently going up on a tax sale (Illinois) the 19th of December and I know the taxes will increase 7 times begining with the 2003 tax bill, because it will fall off the enterprize zone, but I want the property and it would be a great buy even paying the extra. The zone works for my business, so there would be no conflict there but I am limited in my understanding of Illinois law. We would like to bid on the property this year, and continue to pay the taxes the next two years and then foreclose to own the property. The owners run another (same type) of business in a town 50 miles away. We thought of approaching them to buy for less, but figured there would be tons of liens on the property. We are willing to do a title search and go through the process to get the property. What do you think of this opportunity and what steps would you take to aquire it?
Seems like a potential opportunity but still too early to tell. If you are concerned about the property tax call the local assessor and find out the actual person who will assess the building and simply talk to them. My local county workers are great to me but I've heard that it varies. You may offer to take him/her out to lunch or such.
As for liens and what not....take a trip to the county recorder's office!
Since you really want this property, tax liens may not be the right way to go as you may or may not end up with the deed.
You should absolutely contact the country treasurers and recorders offices to find out all encumbrances that are currently listed on the property. This will also give you some info as to potential mortgage holders.
Once you know that you can either contact the mortgage holders, tell them you are negotating to buy the property and want to find out if it is delinquent or near forclosure status. They will most likely not give you that info due to privacy rules, but it never hurts to try.
Once you have that info, you can then approach the property owners about a sale. Otherwise you can wait for foreclosure activity and try to do a short sale prior to foreclosure.
Best Wishes for getting this property.
Glenn
[addsig]
I would definately contact the owners and try and circumnvent the foreclosure process.
C-
Thanks for the input. I did check with the recorder's office and tax assessor's office. The property has no liens against it. The original mortgage holder is listed at a bank in a nearby town. I plan to check with them this week to see if a foreclosure is in process. All the original mortgages (there were three) are before the date the company :"closed the doors and re-organized" and then closed the doors again this past June. There is a sign by a local real estate (commercial) type company advertising BUY- BUILD-LEASE option on the property. That sign went up just in the past few weeks. I've signed up for the auction on the 19th, but am don't have to commit to it.