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Real Estate Information |
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Family Feud with an Auction Deadline - Adventures in Probate/ Estate Purchases
One of our investor students told us of an interesting probate deal or "adventure" they're working on now and while it's a good story, it also illustrates lots of the ins and out of probate or estate issues and purchases. The Seller (we'll call him Scott) co-owned this house with his mom, and he co-signed on the loan with mom. Mom has been deceased for 3 years now. Scott says his sister lives there and is not making the payments, so the mortgage is behind 6 months in payments, and he's ready to sell the house. He said Mom left no will for her estate, but there are 6 other siblings. If that's not enough of an investing adventure for you yet-Scott then tells us that the bank is threatening foreclosure. They're not just threatening?.we discover that the house is scheduled to go to the courthouse steps in 3 weeks. Why would anyone even try to purchase a mess like this with a short timeframe? Well, Scott owes $33,000 + $5000 in back payments on a cosmetic, light fix-up $10k rehab house that's worth about $140,000 when it's all fixed up. So let's do a little math to see if there's just a wee bit of profit in it. ARV $140k minus Rehab $10k minus BuySellHold $21k minus Profit $25k equals MAO $84k So the max we could afford to offer on this house is $84k, and he has to have $38k to cover the mortgage and the back payments, say another $35k so that each Scott and every other sibling/heir gets $5k profit too. That's a total of $73k, still leaving $11k EXTRA profit for the investor!! There IS big money to be made if you understand issues like these! Now, how do we work through the estate stuff. Well first we (or Scott) would have to negotiate this price with all the siblings to reach agreement on their share. Next they'd all have to verify that "mom didn't leave a will". If so, Scott could petition the probate court to appoint him as Administrator of the estate and he'd have to run a notification of the estate ad, and get all the siblings to sign document agreeing to his being made Administrator. Now Scott could sign the Purchase Contract as "Scott, Administrator of the Estate of Momma". If the siblings said "no, Mom DID have a will"?.then we'd spank Scott for fibbing, and see who was appointed as Executor of the estate in her will. That person would then have the court probate the will, and run an ad. Then the Executor would have to sign the Purchase contract as "[Name], Executor of the Estate of Momma", and sell the house and distribute the profit to the sibling/heirs as described in mom's will. In the meantime, don't forget the upcoming foreclosure auction either. It's a race between the probating and the foreclosure to see who will hit the 'finish line' first. So the investor (she can say she's a friend of Scott, just helping out) will need to talk to the lender or their foreclosing attorney, in order to stall the auction. She'll need to get a 'statement of account' to find out what the loan balance is, and also what the back payments, penalties and attorney fees add up to. These additional fees could be paid by the investor as preparation for a subject-to purchase. The risk is that if there is no will AND the sibling/heirs couldn't reach a quick agreement on price, she'd have to keep making monthly payments to the lender to prevent foreclosure but she wouldn't yet own it until (hopefully) the siblings reach agreement and appoint Scott as Administrator. I can hear you saying "but the investor could try for a short sale purchase direct from the lender, and not worry about all these siblings and probate issues"?.problem is she can't get all the borrowers (momma's deceased) to sign all the short sale paperwork, and she doesn't yet have the property successfully probated to have a new legal Adminstrator/Executor that could sign either. So no one can yet legally sell, nor sign short sale paperwork until either estate is probated or the lender forecloses and takes back ownership of the property?.the clock is ticking?we shall see. Best of success & abundance, Lou Castillo FREE! Real Estate Investing Secrets To Earning $100,000 Your 1st Year! -- 11 Overlooked Real Estate Statregies That Will Turn Your Investing Business upside Down And On The Fast Track TO Success...Guranteed! Plus A Bonus Track With A Secret So Successful It Can Double Your Investing Income Overnight! http://www.InvestorSuccessTactics.com
MORE RESOURCES: Experts predicted Minnesota real estate agents would quit, 5 INVESTIGATES found a different reality 5 EYEWITNESS NEWS Altadena’s rough real estate market: Slower sales, lower prices, lottery winner plucking up properties Los Angeles Times Real estate magazine reports Les Wexner as Blue Heron buyer The Martha's Vineyard Times Real estate expert warns socialist mayoral candidate could trigger massive NYC exodus - Fox Business Canadian psychologist Jordan Peterson sets up shop in the Valley, records show The Business Journals Bedrock flexes its real estate portfolio to grow Detroit's tech ecosystem - Crain's Detroit Business Bedrock flexes its real estate portfolio to grow Detroit's tech ecosystem Crain's Detroit Business ‘Taken advantage of’: Real estate agent ripped off friends, church, and federal government - WSOC TV Office real estate wide open in Denver as vacancy rate hits 36 percent Colorado Public Radio Vail Valley real estate inventory is on the rise VailDaily.com NAR Real Estate Forecast Summit National Association of REALTORS® Real Estate Partners Dollar Tree Let's Talk Business: June residential real estate sales lagging, heritage grants and more Pueblo Chieftain A New Perspective: Here Comes the Groom | Real Estate Insights Piedmont Exedra Boston Real Estate Times Unveils 2025 Excellence Award Winners: Honoring the Visionaries Shaping New England’s Future Boston Real Estate Times Dawson County weekly real estate transactions, July 18 Central Nebraska Today State lawmaker joins Westport commercial real estate brokerage as vice president Hartford Business Journal Private Credit Surges in 2025 as Real Estate Developers Bypass Banks The World Property Journal Real estate news: Senior apartments in Tustin sell for $83M; Fullerton Metrocenter snares $118M Orange County Register 5 Essential Tech Tools for Real Estate Agents National Association of REALTORS® New York Housing Market Trends 2025: Is the Tide Turning for Buyers? Norada Real Estate Investments Los Angeles Water & Power commits $100 to real estate debt Pensions & Investments Today’s Mortgage Rates: The States Offering Lowest Rates – July 18, 2025 Norada Real Estate Investments Property management with an owner’s mindset J.P. Morgan Corcoran McEnearney Announces Evan Lacopo to Lead the Number One Real Estate Office in Alexandria, Virginia Alexandria Living Magazine Real Estate Market Report (June) highlandscurrent.org SRS Real Estate Partners Arranges $4.53 Million Ground Lease Sale of Walmart Property in Deltona, FL citybiz Licking County real estate transfers for June 30-July 4 range from $200,000-$14.6 million The Newark Advocate Banner Real Estate Group Breaks Ground on 334-Unit The Faywell Multifamily Development in The Heart MultifamilyBiz Bridgemarq Real Estate Services® Declares Dividend Yahoo Finance Moon Becomes Next Real Estate Frontier, NAR Reports Higher Foreign Investment In US Huntsville Business Journal CBRE Announces Strategic Leadership Appointments Across U.S. & Canada Advisory Business Boston Real Estate Times Gravelle advises on current real estate market in Grant County Columbia Basin Herald Mapletree Sells Sun Belt Warehouse Portfolio to EQT Real Estate for $241M Commercial Observer Operation Pawssible: Greenbrier Humane Society gets a boost from local real estate company Mountain Messenger GenesisM Breaks Ground on 154,000-Square-Foot Biomanufacturing Facility in Bedford, MA Boston Real Estate Times AGC MA Announces 5th Annual Building Advancement Externship to Bridge Educators with STEM Construction Careers Boston Real Estate Times What's the most expensive property sold in Rhode Island? July 18 real estate transactions The Providence Journal The Pipeline: Commercial real estate roundup for 7.18.25 Richmond BizSense Frederick Ford, real estate executive and first Black Union League Club president, dies at 98 Chicago Tribune LOCAL REAL ESTATE TODAY 7.18.25 KQEN News Radio Home Buyers: Stop Freaking Out After the Home Inspection National Association of REALTORS® Home Buyers May Have Accepted a New Norm on Rates National Association of REALTORS® Tips on spotting real estate investment opportunities and avoiding risks, from experts at GR Property Group Community Impact SRS Real Estate Negotiates $4.5 Million Sale of Walmart-Anchored Property in Metro Orlando Shopping Center Business Miami-Dade’s self-storage surge a boom for real estate IslanderNews.com Top Stocks for Real Estate Investment Elite AI Stock Forecasts - Massive wealth growth Jammu Links News Hunt Companies Acquires Controlling Interest in Carter, Strengthening Real Estate Development Platform Business Wire Stage Point Europe Launches Its RWA Token $SPET, Setting it up as a Bridge Between Crypto and Real Estate Morningstar July Economist Snapshot: What Will the Big Beautiful Bill Mean for Commercial Real Estate and Housing? Urban Land Magazine New plans unveiled for Water Street’s second phase Tampa Bay Times Vend Leans Into Verticalisation As Real Estate Revenue Grows 11% In Q2 onlinemarketplaces.com Is Apollo Commercial Real Estate Finance Inc. a good long term investment - Explosive market performance Jammu Links News Vendor & Real Estate Partners Dollar Tree Development Services Offers Online Early Assistance for Commercial Real Estate Projects Prince William County Government (.gov) Wood County Recorder reports on second quarter real estate activity BG Independent News Real estate sales in Jefferson, Bullitt and Oldham counties for Jan. 2-5, 2025 - The Courier-Journal Real estate sales in Jefferson, Bullitt and Oldham counties for Jan. 2-5, 2025 The Courier-Journal Real Estate Transfers ~ June 25, 2025 The Bedford Citizen Drake Real Estate Partners closes largest fund yet after pivoting to institutions Private Equity Real Estate | PERE Real estate transfers: Lake Township condominium complex sells for $5.61 million - Canton Repository Manitowoc's real estate transfers include a sale of nearly $1 million to Riverside Dairy Herald Times Reporter CCI Real Estate Obtains $67M in Construction Financing for Mixed-Use Community at University of Georgia REBusinessOnline |
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