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I'm going to join the ranks of posters who recommend finding a good real estate professional, and probably a lawyer as well. You'll need to get serious advice about all of the tax dimensions of this situation.
Nah .. Refuse the gift and let it go to the next in line. Its time for another relative to benefit from this house that it sounds like you have been living in for 15 years without paying any upkeep, taxes etc.
If theres 30k in backed taxes on the property its not staying in their hands long enough to go to the next in line.
+1. Zillow is the most useless real estate site there is. I have a lot of realtor and appraiser friends, and my SO is a certified home inspector, and they have all told me the same thing: avoid Zillow. MLS is more accurate. I suggest you talk to a realtor. Better yet, talk to more than one. It might also be worth getting the home inspected, if one hasn't been done recently. That way you know exactly what needs remediated and if you're willing to take it on. And how has the mortgage been canceled? I never heard of a mortgage being canceled due to the homeowner's age. Are you speaking of a reverse mortgage, or the over 65 property tax break? (I shudder to think that the homeowner was over 65 and STILL owed over $30 in back taxes, even over a period of years).
If it was a reverse mortgage, the taxes must be current or the mortgage company would make the loan immediately due. I have heard of foreclosures where the owner was 85+ and were allowed to stay in the home until their death, but it's rare. When gone, the bank or taxing agency sells it and after all debts are satisfied, plus costs, any remainder is given to the estate. In this case I really doubt that the loan has been cancelled, and I also doubt that the OP can expect any cash out of the home once all is said and done.
Staying with reverse mortgage for now. Here's why.
One day grandma didn't have to make any more payments. She may have believed the mortgage was "cancelled" or may have expressed it that way. In NY over 70 years of age...no more payments on a reverse mortgage so it would appear the old mortgage was cancelled. Yes...more specifics, etc but generally the idea especiallyn of an older person not totally into this stuff. (and, no, I don't think 70 is old at all)
Next thing, when there is a default such as with taxes, a lender must allow the borrower to cure any default.
Brings us to the next thing. The taxes.
I believe this is regarding a home in NYC. If that is so, here's what I most recently about tax liens in NYC and how quickly they work.
For a single family home, taxes and realated charges must be at least 3 years past due. Yeah.
Then there's the notice.
Then 8 weeks or more later the city files for foreclosure.
2 weeks after filing or more there is the "Notice of Foreclosure" sent out.
At least 10 weeks or more after filing there is the Final Judgement.
The city will not auction a property for at least four more months...at least...after the Final Judgement.
If the city has not sold the property you can still get it back for two MORE years with a release fee and all taxes and charges or by partipating in an installment plan.
Seems like even up the Final Judgement it could be 4 years or so.
Now, about the amount...$30,000. That can easily acrue in four years in NYC. Or three years with additional fees.
I agree. OP, you can just give it to me. No questions. I will be glad to flip it and make $100K. That could be a downpayment on my kid's college education.
Trying to be the "nicest home on the block" is a worthless investment, because your value will be pulled down by all the properties that are not so nice.
So a relative who sadly is going through a health crisis owns a house that ACCORDING to Zillow is worth about $320k. Homes in the neighborhood generally range from $200k-$400k.
However, the house has some MAJOR issues:
- The house owes $30,000 in backtaxes (our region has sky-high taxes)
- The school district has declined and is mediocre/well below-average.
- This neighborhood has slightly-declined and borders a really bad area
+One good thing is that the mortgage has been cancelled on it since the homeowner was elderly.
The house also:
- Needs new (large) driveway, new (large) garage door and overall updating/facelift.
- Needs new roof (raccoons in ceiling of both floors)
- Floors are uneven at various parts throughout the house
- Porch leaks
- The ceiling of the family room, garage and lower bathroom leaks
- Both kitchens need serious updating (the home's a 2-family home)
- Needs electrical work b/c several lights don't turn on (probably either due to raccoons biting wire or water damage)
This cost to fix this home would probably EASILY exceed $100k+. We like some things about this home b/c it is a very large home and when it's fixed up, it could EASILY be the nicest home on the block; and we spent the last 15/yrs in this home.
We just don't know if we should take ALL this on!? (or just somehow walk away)
And we don't know if it'll be a good long-term investment!?
A two family home with $30k in back taxes and maybe $100k of maintenance issues is probably still gonna be worth a sizeable (likely six figure sum...) if other homes truly have sold for $400k nearby...
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Ridiculously incomplete...
