Response to a mailing from an heir

[Dawn Anastasi]

I've been sending out some letters looking for properties.  I received a call from the daughter of one of the people I've mailed. Her father opened my letter and set it aside (but luckily didn't throw it away!) and he passed away a month later.  She found my letter in his things and isn't sure what to do in order to sell his house.

She does not want anything to do with the house, as she lives in another town.  She has a sister in another state who also doesn't want anything to do with the house.  She said her father had no mortgage on the property but he does have credit card debt.  She's concerned that she can't sell the property because the credit card debt will eat up the estate.  (She doesn't know how much it is.)

I wasn't 100% prepared for this type of situation, but I should have been seeing as that anyone could have responded to my letters.

Any advice for me?

[Rick H.]

Use the A.D.E. Model to determine what you should purchase: the asset, the debt or the equity.

I would have the Daughter assign her beneficial interest in the Decedent's estate, nominate you as PR, you record a P-TD referencing your agreement and open probate yourself.

Then, I'd tell the unsecured creditors that I have X dollars available and guise that settle now get paid, those that don't can wait to see if anything is left over. 

There are, of course, potential pitfalls to be wary of, but thus us the basics of the deal structure.