Central, MN · Member since 2015 · 148 posts · 184 votes
Good day BP Family. I have had my eye on a property that is in disrepair and needs a LOT of work, clean out etc. I had been in conversation with the family prior to the owner passing to let them know I would be interested and they wouldn't have to touch/clean out a thing. They could leave everything as is. Right now the property is tied up due to nursing home care for a spouse from a few years ago who was on Medicaid or something to that affect. Anyone have experience with how that process goes? Is there a way to approach them with an offer to get release that hold, lien, etc? We are on year two of the property sitting empty and deteriorating further so was curious what kind of timelines on some of this stuff. Just wondering if there is still hope for this property or not.
Central, MN · Member since 2015 · 148 posts · 184 votes
10y
In doing a quick online search it shows the estate in probate. It looks like those seeking money are a Human Services Department from a MN County and a local nursing home. Not sure if that makes any difference or not. My main questions are: If I approach the family to purchase, can they sell without clearing up the amounts due? Or do they have to settle their stuff before being able to sell? Also, if assets don't cover amount due(I doubt that in this case, but I have no idea) will the government just take possession of said property and if so, how is it sold? Sherrif sale? Just not an area I have any experience in so I have lots of questions.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
10y
You are asking, can the PR (person-in-charge, executor, administrator, etc.) transfer title during probate without paying certain unsecured creditors?
Technically, yes.
However, legally the PR has the fiduciary duty to settle all claims, secured and unsecured or risk court sanctions or worse from an unpaid creditor or claimant.
So, in practice, counsel for the PR should require settlement of creditor claims, particularly those for medical benefits.
Depending on the state (and local rules of court) it MAY be possible to purchase real estate subject to a secured creditor such as a mortgage lienholder.
Ultimately, if a sale is subject to court confirmation, judge will expect PR to either list property for max market exposure and have provided for all creditor's to be accommodated and satisfied, absent a written compromise agreement for less.