Making offers directly to lenders on a pre-foreclosure/probate property.

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Making offers directly to lenders on a pre-foreclosure/probate property.

Sean Dougherty
hilo, HI · Member since 2013 · 102 posts · 7 votes

Dealing with multiple probate properties that are in pre-foreclosure. Special administrator assigned as PR. He does not want to petition court for sale due to my offers being short sale offers. 

Special administrator suggest I contact bank directly with my purchase offers. If bank likes my offer, they can petition the court to sell. At that time commissioner says he would sign off on it. 

He will provide me the loan numbers and 3rd party authorization. 

Has anyone had experience with this scenario?

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
3y

@Sean Dougherty Banks won’t do that. I did a dozen or so short sales…the bank requires a contract, signed by the seller or a legal representative along with a filled hud-1/closing statement showing their net from the sale. The most important part of that is contract signed by the seller. Pursuing short sales from estates is a losing proposition….the heirs/pr’s have nothing to gain.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    3y

    @Sean Dougherty Banks won’t do that. I did a dozen or so short sales…the bank requires a contract, signed by the seller or a legal representative along with a filled hud-1/closing statement showing their net from the sale. The most important part of that is contract signed by the seller. Pursuing short sales from estates is a losing proposition….the heirs/pr’s have nothing to gain.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Sean Dougherty

    Sorry to be bearer of bad news but that’s not gonna happen

    In todays environment finding deals in pre foreclosure is a needle in haystack since the borrower has no other options today like they did a decade ago - today rent is more than their mortgage so the chances of them selling are slim

    We buy distressed loans and 95% today end up in a modification or bankruptcy. Only loans we have foreclosed on recently were not owner occupied

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    Does the estate have zero assets outside of this house? If it has any assets won’t the bank get paid 100% of the loan balance plus interest, fees and penalties by just waiting until probate ends?

    I don’t see any motivation for the heirs (to get nothing by doing this extra work.) or for the bank (to get less thanes could get by doing nothing.)

    Ps. How are they upside down? Did they miss years of payments? If they spent time racking up medical bills under medicaidMedicare I THINK they too would come after any  house sale profits?

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