Probate / Tax Auction Deal

6 Replies

Hi BP Community,

I need help with a lead I'm currently working on. Any advice or guidance will be appreciated. 

Details:

  • Owner (mother) on title is deceased.
  • Daughter wants to save the property from selling at tax auction.
  • $52k default taxes owed. Auction date: 11/20/19
  • $250k ARV
  • No petition for Probate has begun, daughter has no money to pay for anything.
  • Property located in California - San Joaquin County.
  • Tax Collector mentioned that if assessee is deceased, the property may not be sold at auction. Public Administrator will then investigate whether a Probate has begun.

Does anyone here have any experience with such cases? 

My intent will be to wholesale it to one of my flippers.

Thanks in advance!

The county Public Administrator will eventually start Notice of Petition to Administer Estate.

The county wants their tax money. I don't see a deal for you or your end buyer

@Mark Pedroza If we were to help the heir file a petition for probate, would that hold it off from going up for auction?

We can always save the property by paying the taxes owed, but I would want to make sure that she is in fact the only remaining heir and figure out if there are any creditor claims or other liens affecting the equity. 

There's filing fee's and then publishing fee's. If you do upfront any money to recoup it back your now a creditor so save your receipts.

Someone is going to have to step up as the PR (Personal Representative) and the PR has a fiduciary responsibility to the estate and search for any heir's.

When the petition for probate is published creditors (if any) will step forward.

I would advise the single heir to seek legal help from a probate attorney or legal-aid from the county..

If they open the probate, the creditors will have to be paid.  In my area, the tax collector would become one of the creditors.The probate attorney would also become a creditor and their fees would be paid as well. 

Thank you guys. So I ended up finding an attorney that can help us file what's called a Small Estate Affidavit and electing heir as the PR. My main concern was the tax auction deadline, but our attorney can most likely have it postponed IF we can get the petition filed on time. 

My next step would be to get the property under-contract which I'm currently waiting upon the referee to formulate the appraisal so I can make her an offer. Hopefully we end up getting the deal, I'll keep you guys posted. @Mark Pedroza @Sharon Vornholt

PS: No upfront costs, attorney fees paid upon closing. (: