I live in AR, had a state income tax lien placed on my home last month. (don’t ask, it was a dumb mistake!) Can’t get it cleared up fast enough to be able to work this deal.
I had been working on a deal in OK, just across the state line, for the past six weeks. I had already taken my banker by there, and he figured the “as is” value to be about $120,000, and would loan $85 to $90,000 on a construction loan, to purchase and rehab. The value after completion would be $155 to $165,000. The house is 2000+ SF and sits on 20 acres. It was listed for $44,000 and I was going to offer $30,000, figuring that we would come to an agreement at about $35,000.
Things can change in a matter of minutes! My banker got the “monthly” and saw the income tax lien. My FICO has dropped to 631 from 753. Banker says to get it cleared up, or at least give him more information on it. I don’t have the money to pay it, ($17,000), however, my attorney says to submit an offer in comprise. The original bill is about $5,000 from 2000. This will take time.
Then yesterday I found out that the deal in OK, is going to be foreclosed on, and I only had days to put an offer on it. Soooo, last night I went and put an offer in on it. They have until Thurs to accept. After checking with the county records, etc… I offered $18,500. The chances are good that they will accept, as they owe less than $11,000, live in Kansas, and are in desperate need to get rid of it. The agents have shown this property since middle Jan. and has had lots of interest, but the house needs a lot of work. I have a solid crew that I work with, so I wasn’t concerned. Most of the folks that looked at it, wanted to live in it and there was just too much work to be done.
Is there any financing out there that can help with this situation? Since I live in the neighboring state, the AR lien doesn’t fall over to OK. I either need enough to hold on to this for the next say six months, by which time the lien should be taken care of and I can get the construction loan as I had planned, or I need a loan of $75,000 so I can complete this deal. Any suggestions? Is this impossible to do? ANY suggestions would be more than welcomed and appreciated. Thanks!