getting title cleared with a lot of heirs seller doesnt know

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getting title cleared with a lot of heirs seller doesnt know

Shella Sanders
Flipper/Rehabber · Dallas, TX · Member since 2015 · 91 posts · 31 votes

I hv a house in oak cliff, Dallas under contract for 10k. found out there are 25k in back taxes. which still works. I am dealing with two grandsons. The house is still in their late grandfathers name who died before they were even born. Their father lived in the house until he died 5yrs ago. when I look on the county website dcad. all i see if the grandfathers name. however, when title co pulled title, the grandfathers wife and her second husband is also on title because the wife did submit death cert for the grandfather and changed it into her name. so it went to her second husband after she died but i don't see her death cert or any record of him probating it.  so now I am told I have to do affidavids of heirship for the grandmother and also her second husband. AND the grandmother and second husband had like 7 kids who would be heirs as well. who the grandsons i am dealing with do not know at all and assume they are probably all of or mostly all dead. I have tlo skip tracing so i have tried to skip trace them i think i found half of them and the other half i am not sure are the right person.  Is this possible at all to do or should i just walk away. Im sure me and the grandsons can get the affidavids done for the grandmother and second husband but i don't know where to start with finding out about all those kids. and the title co attorney wants to charge me $150/hr to help with no gaurentee's. any advise is helpful. I can sell this house for 55k as is probably if i can get this cleared 

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Jerel Ehlert
Attorney · Austin, TX · Member since 2014 · 890 posts · 759 votes
8y

There are a lot of ways to get "marketable title" which is what people mean by "clear title".  Title can transfer outside a title company, regardless of the state of marketability.  

Trespass to Try Title (TTT) is what Texas calls "quiet title" action. One of the heirs, or you if you get title outside a title company, can file suit to clear title issues by court order.  Underwriters will take that as holy writ after the suit is put to bed.

Adverse Possession (AP).  A variation on TTT and relatively disfavored in Texas, but will likely work here.  You or the seller will likely be able to add (tack) the required time to the Father's time in the property.

Affidavits of Heirship (AH). You can go the long rout and get enough AH's from enough heirs to choke Death's pale horse.  Hopefully everyone cooperates.

Tax lien loans.  If a suit has already been filed, you can make a tax lien loan to the seller if you have that lying around.  When the seller defaults on the loan, resume the tax suit in your own name.  You risk not getting the property, but if another buys it at auction you get a statutory 25% return on top of fees and expenses.  Plus, it wipes almost every kind of title defect.

That's just off the top of my head given the facts presented.  PM if you want to.

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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    8y

    WOW....good one....I had one similar in Duncanville something like 25 affidavits.  Lucky title company did it for me for free, but price was much higher.

    Maybe you through a family reunion for them...every one of the heirs gets $100 for attending, but they all have to show up and sign to get the money.  If one is missing all they get is dinner. 

    Not sure it is worth it for you....but that's one idea....or maybe make it a drawing for $1000.

    1Reply
  • Neil Aggarwal
    Lender · Richardson, TX · Member since 2014 · 537 posts · 228 votes
    8y

    Put the burden on the seller.  Their family created the mess, let them clean it up. Walk away if they don't like that answer.

    0Reply
  • Marc Winter
    Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    8y

    @Bruce Lynn has some good ideas.  If those don't work, talk to an attorney about going the "Quiet Title" route.  If that's too expensive, or not feasible for the situation, ya gotta walk and keep looking.

    0Reply
  • Shella Sanders
    OP
    Flipper/Rehabber · Dallas, TX · Member since 2015 · 91 posts · 31 votes
    8y

    @Bruce Lynn wow that is interesting. i think i should try the family reunion/dinner. thanks

    @Neil Aggarwal the two grandsons are splitting 10k if this goes through. i dont think they really care wouldn't mind if the city just takes the house. one of them is very unwell health wise and has had 2 strokes behind trying to sell this house, so i think they just let it go mentally already. 

    @Marc Winter never heard of 'quiet title'

    0Reply
  • Mark Pedroza
    Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes
    8y

    You've identified all those parties involved as to who is entitled or who may have interest to the property @Shella Sanders.

    You can offer to buy out the interest of everyone involved and start the probate process yourself. Work your numbers (again) and offer $900 (to each party) or anything you think is fair. 

    In order for the property to change hands there must be clear title.

    0Reply
  • Jerel Ehlert
    Attorney · Austin, TX · Member since 2014 · 890 posts · 759 votes
    8y

    There are a lot of ways to get "marketable title" which is what people mean by "clear title".  Title can transfer outside a title company, regardless of the state of marketability.  

    Trespass to Try Title (TTT) is what Texas calls "quiet title" action. One of the heirs, or you if you get title outside a title company, can file suit to clear title issues by court order.  Underwriters will take that as holy writ after the suit is put to bed.

    Adverse Possession (AP).  A variation on TTT and relatively disfavored in Texas, but will likely work here.  You or the seller will likely be able to add (tack) the required time to the Father's time in the property.

    Affidavits of Heirship (AH). You can go the long rout and get enough AH's from enough heirs to choke Death's pale horse.  Hopefully everyone cooperates.

    Tax lien loans.  If a suit has already been filed, you can make a tax lien loan to the seller if you have that lying around.  When the seller defaults on the loan, resume the tax suit in your own name.  You risk not getting the property, but if another buys it at auction you get a statutory 25% return on top of fees and expenses.  Plus, it wipes almost every kind of title defect.

    That's just off the top of my head given the facts presented.  PM if you want to.

    5Reply
  • Shella Sanders
    OP
    Flipper/Rehabber · Dallas, TX · Member since 2015 · 91 posts · 31 votes
    8y

    @Jerel Ehlert omg u just gave me life!

    1Reply
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