Estate/Probate with Foreclosure Proceedings

[George Bittar]

Hey All,

Looking for some guidance. I came across a lead and trying to determine if there is some meat on the bone and what angle to take here. First off- this property has not gone through probate and per the administrator who is the son of the deceased, it will be complete through the court in a couple of weeks. He is positioning the deal to take over the estate currently and over his position as the administrator for $55,000 to have the ability collect rent until it goes through probate then the home can be refinanced. That does not work based on the #s.

The balance past due to WF which is also in foreclosure is roughly $130,000, plus his $55,000 that is $185,000, which is roughly what the home is worth today with no immediate renovations or upgrades needed.

I want to separate this $55,000 for a minute and that piece. Can WF foreclose in the current state this estate is in and can I make an offer without it going through probate? Would the offer go to the court? Technically there is not a legal title owner since its pending in the court. My thought process was negotiating a short-sale and based on the accepted amount will determine how much I would be willing to pay him in addition to the balance to clear the lien.

Hoping for some guidance and other strategies or perhaps this one not to consider. It's a 2 family currently rented at $1,100 each unit and it would cash flow with some cushion on a mortgage in the $100-$130 range with taxes. I am not comfortable with the acquisition price he is proposing based on what is due to WF today and his $55,000. Hope I gave enough details. I would like to be in around $120,000 if ARV is $185,000 on deal like this, but he is hung up on this $55,000 for work he put in. He is motivated and not looking to landlord,but also not in rush and happy to keep collecting rent until the other shoe drops.

[Wayne Brooks]

There is no short sale possibility if the current FMV is $185k, and the loan balance is $130k. The banks may me slow, but they're not brain dead. I don't think the court will take "offers". Probate transfers the property to the heirs, then they decide what to do with it.