Pre-foreclosure Process Clermont, FL

[Tee H.]

Hi,

I have a family member who's home was under her mom's name but her mom passed away. The home is currently in pre-foreclosure process. What can I do to acquire this property through the pre-foreclosure process? She doesn't want anything to do with the home and just wants it off her hands. How can I go about this situation?

[Michael Mutz]

Hey! I live in Lakeland. I have taken a few properties subject to and gone through this process. I can help you figure it out for you to do yourself or see if it is worth partnering on if you want a partner -- either way, want to shoot me a message and we can talk through it? @Tee H.

[Joseph Beilke]

Has the deceased estate gone through probate or was a trust or POA prior to death establish?

If someone has legal authority to speak with the bank start by reaching to them and find out the payoff and if there are any associated fees or liens are on the property.  Then run the numbers to make sure it's a good investment, and the numbers work. If the numbers do work then get back on the phone with the bank and straight up ask if you can pay off the fees and lien and assume the current mortgage.  You will need to jump through all the hoops of like a regular loan and have to be credit checked and underwritten.  High probability  they will say no, so the next question is to ask if you have enough time to execute a signed a contract to purchase the home from the estate with making the bank and all liens and taxes whole.  

Its not impossible to do this but I would recommend you hire a real estate or probate attorney to help navigate this process and not let the bank bully you. Plus the attorney can help delay the actual foreclosure at the court level, this is a small price to pay for someone to help you navigate this in your corner.

[Wayne Brooks]

@Tee H. If there is equity….

The daughter has to get in the position to be able to legally sell the property, probate likely. Possible she could assign her interests in the estate/POA to you so you can go through the probate process. Obviously, time is of the essence. You can check the progress of the foreclosure suit on the Clerk of Court site, once you find the Court Case. You may need to bring the loan current to avoid the foreclosure before you finish the probate process.

[Eliott Elias]

Will have to go through the probate process and find the will. Put it under contract with her and figure it out at title, they will get you to sign AOH documents from the seller.

[Tee H.]

Quote from @Michael Mutz:

Hey! I live in Lakeland. I have taken a few properties subject to and gone through this process. I can help you figure it out for you to do yourself or see if it is worth partnering on if you want a partner -- either way, want to shoot me a message and we can talk through it? @Tee H.

Hi, perfect, I just sent a request to connect! This is a family member so I’d love to see if I could help them out.  Thank you! 

[Tee H.]

Quote from @Joseph Beilke:

Has the deceased estate gone through probate or was a trust or POA prior to death establish?

If someone has legal authority to speak with the bank start by reaching to them and find out the payoff and if there are any associated fees or liens are on the property.  Then run the numbers to make sure it's a good investment, and the numbers work. If the numbers do work then get back on the phone with the bank and straight up ask if you can pay off the fees and lien and assume the current mortgage.  You will need to jump through all the hoops of like a regular loan and have to be credit checked and underwritten.  High probability  they will say no, so the next question is to ask if you have enough time to execute a signed a contract to purchase the home from the estate with making the bank and all liens and taxes whole.  

Its not impossible to do this but I would recommend you hire a real estate or probate attorney to help navigate this process and not let the bank bully you. Plus the attorney can help delay the actual foreclosure at the court level, this is a small price to pay for someone to help you navigate this in your corner.

Thank you so much for this information! The home is currently going through probate no will or trust was created. Originally, I wanted to do a subject to process but now with the lis pendent being filed, I might have to think of another route!

[Tee H.]

Quote from @Wayne Brooks:

@Tee H. If there is equity….

The daughter has to get in the position to be able to legally sell the property, probate likely. Possible she could assign her interests in the estate/POA to you so you can go through the probate process. Obviously, time is of the essence. You can check the progress of the foreclosure suit on the Clerk of Court site, once you find the Court Case. You may need to bring the loan current to avoid the foreclosure before you finish the probate process.

Thank you for this info! I’ve set won’t even give any information about the home until she puts herself as third party. If she’s able to put herself as third party and then puts me as third party so I can get info on the loan, do your think it will work with lender? 

[Tee H.]

Quote from @Eliott Elias:

Will have to go through the probate process and find the will. Put it under contract with her and figure it out at title, they will get you to sign AOH documents from the seller.

Thank you so much! I will get this done! We have an attorney who’s been helping us and we did a contract, now it’s just waiting for probate. But I don’t know what to do now that a preforeclosure letter has been issued, it definitely throws a wrench in this waiting game for probate. Thank you for your advice! 

[John Slater]

Quote from @Tee H.:

Quote from @Eliott Elias:

Will have to go through the probate process and find the will. Put it under contract with her and figure it out at title, they will get you to sign AOH documents from the seller.

Thank you so much! I will get this done! We have an attorney who’s been helping us and we did a contract, now it’s just waiting for probate. But I don’t know what to do now that a preforeclosure letter has been issued, it definitely throws a wrench in this waiting game for probate. Thank you for your advice! 

HI.  The attorney should know this, but any contract to sell the property without your family having the authority (through probate) to sign the contract is really a waste of time.  Unless I misunderstood, you and her have entered into a contract for you to buy, but she doesn't have the rights the sell.  

In california it would be Probate first - attorney files probate docs asking for your family member to be adminstrator/representative of estate, asking for authority to handle the estate affairs.  Once letters of administration are issued (hopefully with full-authority) then she has the right to sell the property at that time... however, be careful, some states the probate courts are looking for 90% of appraised value for the sale.  Anything under that and the courts could be asking "why did you sell it so cheap".  Does your family member have any brothers or sisters? as in is there someone else who could claim rights to a portion of the estate (based on if there is, the attorney should advise). 
The attorney can file probate asking for an ex parte hearing, (a case for an emergency to get in front of the judge). Now the attorney is asking for a stay on the foreclosure so the family can get the rewards of the estate.  
As soon as he files for probate, a copy of those docs should be sent to the lender and the trustee (if there is one) or courts to show its in process and why the foreclosure should be placed on hold.  Until someone files probate, I doubt the lender will even discuss anything with anyone.

[Rob Jacobs]

Quote from @Tee H.:

Hi,

I have a family member who's home was under her mom's name but her mom passed away. The home is currently in pre-foreclosure process. What can I do to acquire this property through the pre-foreclosure process? She doesn't want anything to do with the home and just wants it off her hands. How can I go about this situation?

I've closed hundreds of pre-foreclosures (Short Sales) in your situation. It's complicated and too many people are responding to your post with Some good and some not-so-good info so, I'd rather talk to you directly. Feel free to reach out if you need expert advice.