OfflineHi DG Family-
We have just negotiated a pretty good deal. The seller had a vacant home across town. In lieu of a down payment David, my contractor husband, offered to do some work on the their primary residence. Sweat equity is the way to go! They are financing the balance for us at $200/mo so we can make great cash flow. We did agree to pay the closing costs and back taxes so they did not have to come out of pocket.
My question: Is there a way to negotiate down the back taxes? Currently they owe 2010, 2011 and current 2012. The taxes are very low, and all 3 years should cost us about $1500, but over $400 is fees and interest. When I called the county tax collector I got a flat "NO!" we never reduce our late fees. While I understand they may not have an incentive on a small deal like this, I would still like to understand how to go about so I have a little expereince for the big deals!
Has anyone had success negotiating lower taxes? What approach did you use? Do you have any advice for us?
Thanks!
Nicole Rhodes
www.creativeoptionsinvestments.com
Back taxes are not negotiable. When taxes are not paid they auction them off to investors to raise the money they missed out on from the lack of payment on the taxes due. The investors buys the tax liens base on the fact they will make their money back plus what ever interest rate that is attacked to the tax lien (this is set by the state). You can not negotiate this you either pay it or the the investor that bought the tax lien could forclose on the property.
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