Posted on: 12th Jan, 2012 02:52 pm
sorry if this is rambling, but it is all an overwhelming mess.
my parents have a house they have owned for over 40 years in cleveland ohio. the home is now in a very bad, crime ridden, and blighted neighborhood. they lost all their retirement savings and filed chapter 7 with it being discharged in 2009. no mortgage was owed on the house, but they did have a home equity loan discharged that was more than the house is worth.
they told the bankruptcy lawyer not to save house as they wanted out, because needed a new roof and other problems and would just be throwing good money into a house with no value. my parents moved to a rental. they are still paying property insurance on the house and allow a distant family member to live there, so it isn't vandalized like many of the unoccupied homes around their old house. they did this because they were advised that hey are liable until the bank forecloses. the bank has never foreclosed, or even started the process and looks to have walked away like it has for many other houses in that area.
now it gets more complicated. they are still listed as owners in all the records. my parents have just been notified the county has sold their delinquent city property tax ( several years worth) to a third party and they have a year to redeem the taxes of around $6,000. that company then assumes the debt and a 19% interest. that company is a large corporation that buys tax liens in bulk. does that mean my parents will own more money and still be stuck with the house? does that mean they will harrass my parents, like bill collectors?
what should i tell them to do? i think it is best to get rid of this house and out of limbo, but i don't know how they could do it. if they make monthly payments they can redeem the tax lien, but it will be financially disastrous for them since health problems are stretching their budget as is. i know their social security checks can not be touched. can they give the house back to the bank even if the bank doesn't want it. is there a way to sell the house just to pay of the county tax lien and be done or do they need the something from the bank, because of the discharged home equity loan? the costs of the new roof and the delinquent property taxes would be about the total they could get for their house if by some miracle they somehow found a buyer.
they could potentially borrow money to fix the roof and pay the property tax, but that seems to be unwise since the house more than likely won't sell, if it did they wouldn't break even, and also there is the tiny chance that the bank will foreclose. should they do nothing and wait until the tax lien legally changes hands. if so will that third party finally foreclose or will they still be waiting?
thank you for any advice
my parents have a house they have owned for over 40 years in cleveland ohio. the home is now in a very bad, crime ridden, and blighted neighborhood. they lost all their retirement savings and filed chapter 7 with it being discharged in 2009. no mortgage was owed on the house, but they did have a home equity loan discharged that was more than the house is worth.
they told the bankruptcy lawyer not to save house as they wanted out, because needed a new roof and other problems and would just be throwing good money into a house with no value. my parents moved to a rental. they are still paying property insurance on the house and allow a distant family member to live there, so it isn't vandalized like many of the unoccupied homes around their old house. they did this because they were advised that hey are liable until the bank forecloses. the bank has never foreclosed, or even started the process and looks to have walked away like it has for many other houses in that area.
now it gets more complicated. they are still listed as owners in all the records. my parents have just been notified the county has sold their delinquent city property tax ( several years worth) to a third party and they have a year to redeem the taxes of around $6,000. that company then assumes the debt and a 19% interest. that company is a large corporation that buys tax liens in bulk. does that mean my parents will own more money and still be stuck with the house? does that mean they will harrass my parents, like bill collectors?
what should i tell them to do? i think it is best to get rid of this house and out of limbo, but i don't know how they could do it. if they make monthly payments they can redeem the tax lien, but it will be financially disastrous for them since health problems are stretching their budget as is. i know their social security checks can not be touched. can they give the house back to the bank even if the bank doesn't want it. is there a way to sell the house just to pay of the county tax lien and be done or do they need the something from the bank, because of the discharged home equity loan? the costs of the new roof and the delinquent property taxes would be about the total they could get for their house if by some miracle they somehow found a buyer.
they could potentially borrow money to fix the roof and pay the property tax, but that seems to be unwise since the house more than likely won't sell, if it did they wouldn't break even, and also there is the tiny chance that the bank will foreclose. should they do nothing and wait until the tax lien legally changes hands. if so will that third party finally foreclose or will they still be waiting?
thank you for any advice
Sorry you are in this position. First go to the county recorder and pull up the deed and other documents regarding the heloc. Once you know for certain that there is a lien against the home, for the heloc, then contact them an initiate the deed in lieu. You would be giving the deed to the property back to the bank. If for some reason there are no deeds recorded, sell the property asap to cover the tax lien. If not, the state, or city could have demanded sale of the home, via tax sale. But if they sold to a collection agency, it probabbly means you have not reached the time frame the city has to foreclosse. Generally its several years of unpaid taxes. Worse case, contat a real estate attorney to see if they can help you. Good Luck