Tax Deed And Forclosure Situation With Old Owner
I own a tax deed I purchased in PA tax sale for a land parcel.
The previous owner has contacted me and is asking for me to pay off his lien he had on the property and thus allowing me clear title on the property.
The mortgage listed is for a total of 7 properties and this person wants me to pay off 75% of the mortgage, even though my interest is for only one of the properties.
He has threatened me with forclosing on the mortgage and states he can and will obtain the property unless he gets his price. My question here is, he threatens it, but to me it would sem a no brainer for him to do it if he could without it causing reprecussions to him if he could honestly obtain the property away from me?
I do have a lawyer involved but I am very interested in anyone's opinion on this matter.
What would be the ramifications if he should forclose on the mortgage? And, what does that do to his situation? I also am prepared to go back this year and purchase all of his properties and pay off 100% of his mortgage if need be as there would be enormous opportunity there.
I understand if I get stuck with it but I am searching for information that may prevent that from happening.
Thanks to anyone who can provide any information.
I would tell him to foreclose and then if you can redeem your tax certificate at that time foreclose on him. Tax liens usually survive a foreclosure as they have to be paid by someone and they stay attached to a property. So if he did foreclose he would now be liable for those taxes.
Nothing has happened to you, you just have a different person owing you money. I would let him foreclose anyway, if one mortgage covers 7 properties it could get messy when it comes time to remeed your tax lien.
I think you have answered one of my concerns in that if he does forclose, he does can not receive the right to resell the property without re paying the taxes (to me). I do have the tax deed from the local government in hand and if need be, I will buy his entire mortgage out in the next tas sale and assume ownership of all properties listed on the mortgage I am talking about.