Video Transcription
Brooks: Hey, guys. Brooks YNP Home Solutions. We’re going to continue our video series of the top 10 questions that we receive when we’re talking with homeowners about ways in which we can purchase their property. And these are the top concerns that come up on the regular basis. So today’s topic or today’s question is I owe back taxes, is that going to affect you guys being able to purchase the property from me? And also, will it affect how much money I’m able to get from the proceeds?
So this is a very simple question. Answer is simple as well. Yes, we’re able to purchase the property in every situation. It does not matter. We can … And it doesn’t really even slow the process down that much. It does depend if your property has already been sold at tax sale. Meaning you allowed it to get to the point where it went to either the courthouse steps or maybe it’s an online auction environment in your city or municipality and someone else has already purchased the tax certificate. Meaning they’ve paid the back taxes so now you owe them that amount plus maybe some interest. And it varies city by city and state by state. That’s different in every state. So in Pennsylvania, Maryland, and the West Virginia markets that we work, it’s different in each one of those states.
It still does not affect us being able to purchase the property. Matter of fact, we’ve done several transactions where they were behind. They were back taxes out. I don’t even think it lengthened the closing period. I think we were still able to do it within 20, 30 days in most cases. The title company has to do a little bit more homework finding out exactly what is owed and who we need to make the payments to. But the companies that we use, they’re versed in that, they get that done very, very quickly for us. So no it does not affect us being able to purchase the property.
But just like anything else, if you owe $10,000, which I don’t know if that could even happen really. I mean, I think somebody else would own the property in that case. But say you owed $5000 in back taxes and after we made up the back taxes and the level of repairs were pretty significant and the value of your home after all that was paid just didn’t justify us being able to do a cash deal, that would affect us being able to purchase the house. Remember, it’s all numbers. This is all numbers to us. We have to make a profit, one, if we’re going to resell it. We have to make cash flow, two. Always looking for cash flow for us if we’re going to rent the property. So it’s all numbers based.
Is it going to affect your proceeds? Meaning your amount that you get from closing? That depends. If we’re going to make them up and we’ve done this both ways, we’ve made up the back taxes for the seller. Meaning we paid them at closing. In that case, no, it doesn’t affect your proceeds. So whatever you owe, if you don’t owe anything, you just have back taxes, you’re still going to walk with a check like you didn’t even owe those back taxes. In the other situation, they were taken out of your proceed check. So if you owe $2500 and the deal was tight, meaning we weren’t able to make them up and still do the deal, but if you took them out of your proceeds we could still get the deal done, then yes, it will affect the amount that you’re going to walk away from when closing. How much? Just depends on how much you owe on back taxes.
We’ve done deals both ways. We’ve done them where we’ve made them up in most cases. And we’ve also done them where the seller had to take it out of their proceeds. And either way, it just is a matter of do you want to sell the property, how bad do you want to sell the property, and are you willing to make up that difference to be done with a problem property?
So I hope that answers your question. So no, it doesn’t affect us. We can still purchase the property for cash. Yes, it may affect the amount that you’re going to walk away with in some cases and other cases not. So it’s just very deal specific. But don’t let that stop you from giving us a call. YNP Home Solutions. We’ll buy the property in a variety of different situations. Back taxes is certainly one of them. So don’t wait till it’s too far. Don’t wait till someone else buys your tax certificate.
Call us. Let us come help you out before it ever gets to that point. Again, this is Brooks with YNP Home Solutions. We’re a local house buying company right here in your backyard. Martinsburg, Hagerstown, Chambersburg, Waynesboro, and all the cities around those that I just mentioned. We’ll purchase your property for cash, we’ll buy it on terms, we’ll lease option it back from you. We’ll do a lot of different things to help you get to where you need to be so you can put those properties behind you. Give us a call today, 240-244-3953. I hope this answered your question about I owe back taxes, can you still purchase our property? Be looking out for video number five tomorrow in this series and we’ll keep this train rolling and we’ll get through all 10 questions.
All right, guys. Have a great day. I hope you have a great weekend. Take care. Thanks a lot.