Buying property Subject To currently in probate

Buffalo Grove, IL · Member since 2017 · 2 posts · 0 votes

Hi all,

I found a property where the owners are deceased and a $90k mortgage remains. Am I allowed to purchase this property ‘Subject To’ and take over payments, to relieve the executor of the mortgage payment burden? No other liens on property.

Thanks!!

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Randall AlanPro Member
Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
3y
Quote from @Dennis Degelmann:

Hi all,
I found a property where the owners are deceased and a $90k mortgage remains. Am I allowed to purchase this property ‘Subject To’ and take over payments, to relieve the executor of the mortgage payment burden? No other liens on property.
Thanks!!

The executor is obligated to do what’s best for the estate. Any experienced executor will seek to maximize the value of the assets for the beneficiaries. Any judge who is overseeing the case would insist on an appraisal and would expect the executor to try and find something close to that value.

You sort of miss out on the formalities of how estates are settled through the courts. It's a pretty formal process. You aren't going to swoop in and snatch a property for pennies on the dollar (usually) if everyone is doing their job the right way. The mortgage balance has absolutely nothing to do with what the property is worth (as you - and they - know); … quite the opposite… that figure has to be subtracted from the value of the property before the estate even starts to see a dime to give to the beneficiaries…. Along with taxes, commissions, etc. Most executors would list the property on MLS and sell it at market value (ask yourself: why wouldn't they do this?) Would you want YOUR executor "ditching" probably the biggest asset there is for the typical person to an investor looking to make a quick buck? Probably not.

Are there insider deals out there? Yep! Experienced executors have preferred buyers, sure! Most probably buy with cash and the executor knows for the sake of speed a cash deal has value to settling the estate faster… so their preferred buyer is preferred for a reason. But as an outsider you are highly unlikely to find your way into an insider position unless you are friends of the executor to begin with.
If someone isn’t using a lawyer and the house passed outside of probate (and the beneficiary doesn’t understand the market or life in general - and yes those people exist) you might have a chance. But the odds are few and far between.

Randy

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Allan Smith
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
3y
If it is in Probate it's not just liens you have to worry about, but other creditors that could come after the property after you already put your cold hard Cash into it
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
3y
This is dead in the water. IMO without an assumption the estate would need to remain open until the creditor was paid.
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
3y
Quote from @Dennis Degelmann:

Hi all,
I found a property where the owners are deceased and a $90k mortgage remains. Am I allowed to purchase this property ‘Subject To’ and take over payments, to relieve the executor of the mortgage payment burden? No other liens on property.
Thanks!!

You can make the offer but it will most likely be rejected. Anticipating that the property will eventually go on the market, I'd give them an offer sheet with multiple options to sell to me in liue of just of subject to. Again All they can do is say no.
312-681-7487
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