cliglot
2 hours ago
> You can buy a house from the government for $3,000
With $120,000 owed in back taxes due by you upon purchase. Also the structure is derelict and will have to be destroyed before anything can be done with it.
burningChrome
an hour ago
This is the same thing that happened back in the day. I remember seeing ads to buy castles in Europe for under $10,000. I made a quip about it to my boss and he said he was seriously looking into it as he was really big into real estate at the time.
He assumed he would have to put some money into it, but not the millions the fine print said they would need to invest to bring it up to a livable standard - which required a ton of construction, electrical and plumbing as a starter. He kind of scoffed at it once he started learning all of the details.
I also remember seeing the same thing when entire blocks of houses were being sold during the housing crash after 2008. Majority of the houses were in really bad neighborhoods (the ads for houses in Detroit were eye opening) or conversely way TF out in never never land where some developer decided to build some neighborhood development that went belly up after the crash and was stuck with half finished houses and no way to pay to get them finished.
BugsJustFindMe
an hour ago
It's also in, if you'll pardon my saying so, located in a shit-hole place to live. Look at the building across the street on google street view.
BorisMelnik
an hour ago
not always true or even the norm, I checked 3 near me and they are decent neighborhoods
Waterluvian
an hour ago
I’m curious about this but don’t want to dox you. Any guidance on how to find comparable examples?
malshe
an hour ago
The best deals are always in shithole places /s
There was an episode of Fixer Upper where Chip and Joanna helped their carpenter buy a house for 15K. The neighborhood was dystopian. Presumably people were using the house for shooting practice as its one side was entirely bullet riddled.
NitpickLawyer
an hour ago
> With $120,000 owed in back taxes due by you upon purchase.
How does it work in the US? Are taxes on the property itself? This feels weird. I would have thought that the property can only be sold if everything is OK with it (no litigation, liens, etc), and taxes are owed by persons? Is it different over there?
1-more
an hour ago
> the property can only be sold if everything is OK with it (no litigation, liens, etc), and taxes are owed by persons? Is it different over there?
This could vary by jurisdiction, but as I understand it, taxes and liens are attached to the property itself. "Clean title" can be a contingency of offer: buyer can back out and get back their earnest money (aka deposit) if the property has liens/encumbrances that are not written down in the sales contract (example clause at the link at the end). When you buy the place, you get title insurance, often mandated by your mortgage lender. The title insurance company does a title search on the property to find liens and owed money on the property and then sells you an insurance policy saying that they'll make it right if they missed anything during their search. This is because your mortgage lender never wants to be second in line to get their hands on the property to recoup in case you default on your mortgage. Liens on the property should be easy to find because they're supposed to be registered with the local municipality: maybe the city you're in, maybe the county, maybe the state, idk I think it depends. In practice, maybe some roofer/plumber/landscaper forgot to do that and now you have a problem you didn't know you had. That's what the insurance is for. The property _status_ is not knowable so much as the _status transitions_ are knowable: when was a lien attached or removed from the property, so that's why it involves a private company looking it up. You'd think it'd be a public good, but it's not. Odd.
As an example: when I bought my current place, the previous owner was financing the furnace which included free annual service from the installer. He wanted us to take over the payments. We asked him to convey without encumbrances, meaning pay off the balance with the furnace company before we'd close on the house. If he had refused, we could have backed out of the sale because our offer said that we were only willing to buy without owing anyone anything.
dcrazy
an hour ago
It’s called a tax sale. The delinquent tax was assessed on the value of the ”improved property”.
fhdkweig
an hour ago
Yes, you are basically just buying the land underneath.
dwa3592
an hour ago
not quiet true - if you wanna use the land - you'd have to pay to destroy the house already built on top of it.
someguynamedq
an hour ago
123,000 is still very cheap
advisedwang
38 minutes ago
Did you look at the $3000 house? https://govauctions.app/auction/hud-home-420-e-dayton-st-fli...
It needs to be torn down and rebuilt. It's not a large plot. It doesn't seem to be in an attractive location. For all we know the water is undrinkable. I suspect its true value is negative.
cliglot
24 minutes ago
Yes and for that I can get something much nicer in a non derelict area. Probably a much better plot too if I go rural.
furyofantares
an hour ago
Sure, maybe - but just because 123,000 is cheap doesn't mean it's OK to make your headline "You can buy a house from the government for $3,000" if the reality is that it's 40x as expensive and you don't actually get a house, you get a demolition project you have to complete in order to use the land.
beng-nl
an hour ago
Not if the thing is actually worth $3000
giancarlostoro
20 minutes ago
$123,000 still not terrible if the home is worth 5 time that.
FireBeyond
an hour ago
Yeah, "almost certainly needs serious work" in that first home was doing some serious heavy lifting - the roof has collapsed and the foundation has sunk.