Stopping Foreclosure on a Decedent's Property
I'm working a deal where the property owner passed away in March. The property is in pre-foreclosure with a scheduled Jan 3rd auction date. I've contacted her sister--who says she is the sole heir. my plan is to help the sister get appointed as executor, halt the auction, and get added to the deed.
Does anyone recommend a type of agreement I can sign with the sister so that she is required to sell my company the home?
I believe you are simply looking for a contract. I don’t mean to be too basic, but a contract means she can’t sell to anyone else. I think your issue is it needs to go through probate of some sort, that’s what we would call it locally. Especially if there is no will or trust. You probably need to help her find a decent attorney…I am in the middle of those types of deals myself. If she can be the executor as you put it, she should be able to sign the contract. There maybe a different term like, ‘personal representative of the estate” but these terms vary state to state, seek an attorney for that, or get your title company to help you there, etc. But DEF get under contract asap if you haven’t yet, that’s how you secure the deal - sellers can not sell to someone else if they have an executed contract with you, that should be fairly universal in every state.
Without being an attorney, I would argue that any current agreement is meaningless. Only the executor has power to sell, and she cannot bind the sale of the property to you because she is not now the executor.
Much success.
#4 Marketing Your Property Contributor
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#4 Marketing Your Property Contributor
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It’s the old issue of control. . .
So far, you can only assume the heir is correct. I have completed thousands (!) of probate deal in my state (CA) since starting in 1978. Heirs are not Genealogists and even those rules apply when an intestate (no will) estate.
Said heir could assign their interests to you (to protect you!) while you get them appointed as administrator or personal rep.
If you do not take that extra step, once appointed and in public records, people will come out of the woodwork with offers that screw up your plans.
Better be an abundance of equity to make this worthwhile to you, heir(s) and the attorney.
REMEMBER: All probate laws are State specific.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Put the property under contract and have a attorney walk you through this process.
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@Jared Hennings
The estate needs to go through probate. Until she has authority to sign to sell the property any agreement is not valid.
Why not just buy it at foreclosure sale?
The challenge with these is that if there is no trust it will need to go through probate as you know. The process may be quicker is there is a will to probate. I'd really be seeing how long probate will take as it may be a shame to spend money to have it go into the probate process only to be foreclosed on. Hopefully she can get appointed executor of the estate quickly so you purchase it. I'd likely just be doing a purchase agreement for a set price and disclosing that it will be going through probate and that she agrees to sell it to you for X price once she is appointed executor.
Quote from @Jared Hennings:
I'm working a deal where the property owner passed away in March. The property is in pre-foreclosure with a scheduled Jan 3rd auction date. I've contacted her sister--who says she is the sole heir. my plan is to help the sister get appointed as executor, halt the auction, and get added to the deed.
Does anyone recommend a type of agreement I can sign with the sister so that she is required to sell my company the home?
I wanted to provide everyone an update: the sister (and her son )were able to get appointed as executor of the estate. I negotiated terms and got a verbal agreement for them to sell the property to my company at ~$122k (approx 68% ARV). However after my sending the contract the sellers informed me that they would be forwarding the contract to an attorney. The attorney is in essence a decision maker and has advised the sellers to work directly with end buyers only.
Thanks for the feedback and responses. Note: I pursued this as a wholesale opportunity so that's the deal perspective.
Quote from @Nate Sanow:
I believe you are simply looking for a contract. I don’t mean to be too basic, but a contract means she can’t sell to anyone else. I think your issue is it needs to go through probate of some sort, that’s what we would call it locally. Especially if there is no will or trust. You probably need to help her find a decent attorney…I am in the middle of those types of deals myself. If she can be the executor as you put it, she should be able to sign the contract. There maybe a different term like, ‘personal representative of the estate” but these terms vary state to state, seek an attorney for that, or get your title company to help you there, etc. But DEF get under contract asap if you haven’t yet, that’s how you secure the deal - sellers can not sell to someone else if they have an executed contract with you, that should be fairly universal in every state.
thanks for the feedback--still keeping my fingers crossed on executing the contract
Quote from @Brett Goldsmith:
The challenge with these is that if there is no trust it will need to go through probate as you know. The process may be quicker is there is a will to probate. I'd really be seeing how long probate will take as it may be a shame to spend money to have it go into the probate process only to be foreclosed on. Hopefully she can get appointed executor of the estate quickly so you purchase it. I'd likely just be doing a purchase agreement for a set price and disclosing that it will be going through probate and that she agrees to sell it to you for X price once she is appointed executor.
that's the same approach i planned to take initially.
Quote from @Chris Seveney:
@Jared Hennings
The estate needs to go through probate. Until she has authority to sign to sell the property any agreement is not valid.
Why not just buy it at foreclosure sale?
agreed. I pursued this one as a wholesale deal.
Quote from @Eliott Elias:
Put the property under contract and have a attorney walk you through this process.
appreciate the feedback!
Quote from @Rick H.:
It’s the old issue of control. . .
So far, you can only assume the heir is correct. I have completed thousands (!) of probate deal in my state (CA) since starting in 1978. Heirs are not Genealogists and even those rules apply when an intestate (no will) estate.
Said heir could assign their interests to you (to protect you!) while you get them appointed as administrator or personal rep.
If you do not take that extra step, once appointed and in public records, people will come out of the woodwork with offers that screw up your plans.Better be an abundance of equity to make this worthwhile to you, heir(s) and the attorney.
REMEMBER: All probate laws are State specific.
Excellent feedback! Thanks for the perspective.
Quote from @Bob Reinhard:
Greetings .
Without being an attorney, I would argue that any current agreement is meaningless. Only the executor has power to sell, and she cannot bind the sale of the property to you because she is not now the executor.
Much success.
True indeed. Thanks for the feedback
@Jared Hennings
I've been down this road plenty of times. Seller wants to send to an attorney. Attorneys don't concern themselves with value. They just want to make sure you are legit and your contract is fair.
I suggest you have your attorney call hers to help boost your credibility.
How did this end up @Jared Hennings?