All Forum Posts by: Sean Dougherty

Yes that is all how I understood it as well. Home is not in Bankruptcy. I have bought other homes in this way and it has never been an issue that commissioner is assigned. This is in Hawaii with a local Bank as lien holder. Both Bank of Hawaii and the commissioner have told me that homeowner has no right to sell the home and everything must at this point go through and be confirmed by commissioner and court system.

The lender in particular was very rude and standoffish and wouldn't speak with me much even though I had a 3rd party authorization from seller. They told me I would have to do all negotiations through the commissioner as he was now legal rep for the property. From my experience with other banks they are usually quite accommodating considering I am offering to fully payoff a delinquent mortgage.  

I have contacted foreclosing attorney and told them the situation and they are contacting the lender on my behalf to see if they can dismiss commissioner and allow the sale.

Yes sir, Subject to is entirely possible in this situation. It really just depends upon the specific hardship of the property owner. Subject to can be done at anytime during the foreclosure process as what you are doing is paying off the arrears to cure the default. It is somewhat complex but can benefit both parties.

Long story short: Preforclosed home that was scheduled for auction just before the moratorium. I have owner on board to sell. I contacted lender and they are saying that at this time the court assigned commissioner is the only one who can sell the home. The Home owner has no legal right to sell and it must go through the commissioner. I have contacted the foreclosing attorney to see if it is possible to dismiss commissioner and allow a standard sale outside of the courts. 

Any suggestions or pointers here?   

I forgot to mention that the estate is insolvent. No other assets.  Therefore a short sale would not affect it regardless of how short.  

Update on this guy. Now administrator has put property on MLS. Three weeks and not a single offer. Asked if he would submit my offer now and he says "No, it is too low."

I kindly requested him to please inform me at what offer price would he be willing to submit to bank.

Feels silly to me to be negotiating with an attorney assigned to an insolvent estate on a shortsale before I even can even make an offer to the lender.

Yeah I understand that. The estate has no other assets, it is insolvent. But being a short sale, really there is no difference for the insolvent estate if it short sales for $-1 vs -$100k. There will be no deficiency judgement or credit damage. It seems in the estates best interest to avoid foreclosure auction and having the house just sit for months to years as that process unfolds.

Unfortunately probate attorney is from a different island. (Hawaiian Islands all one county) I have tried to call him multiple times though with no response.   

Hi guys, I could use a few pointers here.

I have three deals that I have been working with a probate attorney special administrator. All three have same situation: In probate, in foreclosure and also no equity. All three would be short sales.I reached out to this attorney and at different times made offers on all three. He initially encouraged me to submit an offer and he would forward to lender. I submitted offers along with repair bids from my contractor. (All three are in poor condition.) That was 3-4 moths ago. 

After reaching out to him again he told me he did not want to submit my offers to banks because he thought they were too low. He then told me he would list the properties and after 2 weeks see what higher offers he could get. It has been going on a month and not one offer has come in. He still refuses to submit my offer because he says it is too low?!? The lender should be the one making that judgement. I would think at this point lender would want to see any offers considering it will be scheduled for auction anytime. (its not an FHA loan)

I have never had to negotiate with a court appointed administrator before. Why does he care how much this property sells for? It will be a short sale regardless, the estate will not receive any funds, he will get paid regardless. The only one who should care what the home sells for is the lender. I would be happy to negotiate with the lender…but with the administrator??? And this is just so he will show my offer to the bank? Is this normal? Why would he not submit my offer, even after no other interest in property? Can I bypass this administrator and somehow deal directly with the lender?

Hi guys, I could use a few pointers here.I have three deals that I have been working with a probate attorney special administrator. All three have same situation: In probate, in foreclosure and also no equity. All three would be short sales.I reached out to this attorney and at different times made offers on all three. He initially encouraged me to submit an offer and he would forward to lender. I submitted offers along with repair bids from my contractor. (All three are in poor condition.) That was 3-4 moths ago. After reaching out to him again he told me he did not want to submit my offers to banks because he thought they were too low. He then told me he would list the properties and after 2 weeks see what higher offers he could get. It has been going on a month and not one offer has come in. He still refuses to submit my offer because he says it is too low?!? The lender should be the one making that call.I have never had to negotiate with a court appointed administrator before. Why does he care how much this property sells for? It will be a short sale regardless, the estate will not receive any funds, he will get paid regardless. The only one who should care what the home sells for is the lender. I would be happy to negotiate with the lender…but with the administrator??? And this is just so he will show my offer to the bank? Is this normal? Why would he not submit my offer, even after no other interest in property? Can I bypass this administrator and somehow deal directly with the lender?

The issue is that this loan is in default. Its a non fha backed loan. Foreclosure is pending and I am not sure if the note holder is informing foreclosing attorney to suspend auction.  So to "let it simmer" may mean foreclosure. 

would a short sale specialist have any more leverage here? If so what? 

Thanks Bob,

Yes I'm aware that short sale home still needs to be listed with an agent. Wasn't thinking of cutting agent out of the transaction. I just feel that an agent may not be as specialized as an assigned "short sale negotiator". I've had almost a dozen short sales under contract and for whatever reason they have fallen apart. Just trying to maximize my success rate and thought getting someone more specialized in the process may help.