Suggestions on a "short sale" (mortgage, refinance)

[pnwmdk]

I stumbled across someone selling a 2+ acre lot with a junk house, listed as a "short sale". The homeowner seems to have a mortgage of some time, but more importantly, is a little short of missing his second payment for taxes - as well as the first and the entire previous year.

I suspect, that since the owner can't pay the taxes, and possibly can't pay the mortgage, either, that's it pretty distressed. The entire history of this owner is one of repeating cycles of lis pendens, refinance, delinquent taxes... In addition, the 08, 09 and '10 taxes are listed as "forfeited".

I like the idea of the large lot, however, this is in an area that's not going to be high value, no matter what you have on it.

What would you do if you wanted it? The tax bill is not far from the most I'd pay for it.

[chet everett]

If the property has any potential commercial use it will get swept up quickly at tax sale. Lots of people make out like bandits at tax sale but lots more over pay for junk property on the hope that they can resell it. Big mistake...

[pnwmdk]

Originally Posted by chet everett

If the property has any potential commercial use it will get swept up quickly at tax sale. Lots of people make out like bandits at tax sale but lots more over pay for junk property on the hope that they can resell it. Big mistake...

No, no real commercial value. I'm just wondering what kind of strategy to use. The way I see it, I doubt he can continue much longer without the county, city, or lender foreclosing on him. I don't think the lender wants to, they'd just inherit property with baggage and little commercial value.

If it were ME, and I were the lender, I'd bail, to avoid adding even more costs to what looks like a real turkey of a borrower and property, and let the new buyer eat the back taxes. But, I have no idea what lenders think or how they think, really, when faced with these things.