Posted by mei122@aol.com on October 15, 2007 at 03:56:09:
Thanks again. I have an authorization to release information as well as the quitclaim deeds ready to be signed. I will definitely work the numbers. It’s not a deal if I can’t make money.
Probate Deal - Posted by mei122@aol.com
Posted by mei122@aol.com on October 13, 2007 at 19:15:12:
A woman contacted me with a house they are interested in selling. The house was owned by her father who passed one year ago. She has one sister. The father died without a will. The lender filed a motion to appoint a special representative. The court date is November 22. The balance on the mortgage is $120k. Based on comps in the area, I figure the house is worth around $150k. What should I do? I figure if the “lender” filed to appoint a special representative, the rep will be looking after the lender’s interests and not that of the heirs. The woman wants to basically resolve this issue and move on with her life. What would be a good course of action? Please help.
Probate Deal (?) - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on October 13, 2007 at 20:16:33:
Why is this a deal? Rather than becoming fixated on the fact that it’s a potential probate real estate sale, focus on the numbers. 120/150 doesn’t look very appealing to me.
Also, why would a lender have a Spec Admin appointed? It makes no sense. If lender has a problem, they’ll typically just foreclose as there’s rarely much of any benefit to them to get involved in the estate administration since they’re a secured creditor (Texas may be the exception).
Since I’m more familiar with CA and you don’t reveal what state your matter is in, I’m at a disadvantage. Also, I suggest that you mention what state that your property is in when posting any queries with legal issues as state do vary.
Re: Probate Deal (?) - Posted by mei122@aol.com
Posted by mei122@aol.com on October 14, 2007 at 13:53:46:
Thanks for the response. I am in Illinois. The lender has begun foreclosure proceedings. They commenced the proceedings about a month before the motion. I was wondering if the lender may be interested in doing a short sale.
Is bank interested in short sale? - Posted by John Merchant
Posted by John Merchant on October 14, 2007 at 18:33:00:
I’d make contact with the attorney who filed the motion in court for the bank, and ask him if the bank might have an interest in short sale, and if so, who to talk to at the bank.
Since lots of (most?) lawyers are loathe to return a call to a person/party they’re not representing, or to a non-lawyer asking about an ongoing file, you’ll probably need to write that lawyer a letter (you remember, with a real stamp and using USPO :).
In your letter explain who you are and why you’re asking and the lawyer will likely get you an answer when he realizes you’re trying to help him solve his client’s problems.
Re: Is bank interested in short sale? - Posted by mei122@aol.com
Posted by mei122@aol.com on October 14, 2007 at 20:32:23:
Thanks for your response. Since the father died intestate, how can I put together a deal. Could I have the sisters both sign a purchase contract or do I have to wait until a representative be appointed?
Re: Is bank interested in short sale? - Posted by John Merchant
Posted by John Merchant on October 14, 2007 at 21:33:03:
Sure, if you can get a QC Deed from the intestate’s kids, do it (if dirt cheap), then that puts you in the position of being able to negotiate from an ownership position.
I can see that maybe the bank wouldn’t feel comfortable discussing this with you, even if were an owner, without authority from the probate court.
After all, their customer/client is now gone, and since they’d like their money as he promised he’d pay them, they’d probably like to talk to you if they felt safe doing so and had court permission.
But do check the numbers and don’t let solving a legal puzzle land you in hot water with a property with too much debt and not enough equity.