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All Forum Posts by: Sean Dougherty

Sean Dougherty has started 52 posts and replied 93 times.

Post: Probate/shortsale/foreclosure...all at one time!!!

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

No, no counters. Offer has not even been presented to the bank. Manager of the estate has refused to submit offer to bank.

Post: Property in probate/forsclosure

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

No not a reverse mortgage. And to be clear, 5k is due only upon close of escrow. Home is not yet on the MLS. I contacted them when probate and foreclosure opened.

I have bought numerous short sales and banks have never rejected my rock bottom price. Each time they have countered and more often than not we were able to work out a price.

It seems in estates best interest to allow this process to play out. Here in Hawaii county, short sales often are quicker than foreclosure. In addition foreclosed home usually sits for a year or more before bank flips it and re sells. Most times these homes are not being maintained and deteriorate during that time. Hard to think why administrator would not present offer.

Post: Probate/shortsale/foreclosure...all at one time!!!

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

No, 5k is only if deal goes through. There is no equity in the estate, it is insolvent. Short sale is being allowed and encouraged by administrator because in many cases the short sale process can  be quicker than that of foreclosure. And given the fact is saves a home from sitting and rotting for years before bank re possesses and sells. 

Given that criteria, why would administrator not present "any" offer to the bank and allow negotiation to happen there? 

Post: Probate/shortsale/foreclosure...all at one time!!!

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

Interesting situation: I have an offer in on a probate property. Property is in foreclosure. No equity in home and a special administrator has been assigned by court as the PR. Thus this deal would be a short sale. Administrator has told me he will submit my offer to lender if I pay his flat fee (5k) and include proof of cash funds, (home in unfinanceable). I have done so, along with providing contractors repair estimate on the home .

Now administrator is saying offer is too low and he will not submit. Considering this is a short sale and he is getting his flat fee in any case, why would he not allow the offer to go through and for the bank to negotiate with me if price is too low?

The estate will gain nothing by rejecting my offer, rather everyone will gain. Am I missing something here?

Post: Property in probate/forsclosure

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

Interesting situation: I have an offer in on a probate property. Property is in foreclosure. No equity in home and a special administrator has been assigned by court as the PR. Thus this deal would be a short sale. Administrator has told me he will submit my offer to lender if I pay his flat fee (5k) and include proof of cash funds, (home in unfinanceable). I have done so, along with providing contractors repair estimate on the home .

Now administrator is saying offer is too low and he will not submit. Considering this is a short sale and he is getting his flat fee in any case, why would he not allow the offer to go through and for the bank to negotiate with me if price is too low?

The estate will gain nothing by rejecting my offer, rather everyone will gain. Am I missing something here?

Yes. All good points. Problem is even though smaller local banks may have issued the mortgage originally, almost always they have been sold off or assigned to larger corporations or hedge funds, especially once they stopped performing. 

Which is why I am trying to find maybe a back door (personal connection with borrower and good rapport with the foreclosing attorneys) to these larger banks in order to buy a deal or two at a time. Has anyone ever had any success in some type of "creative one off deals" with the larger lending institutions?

I am an investor in distressed homes, mainly pre-foreclosures. Long story short...it has become quite a headache dealing with both the home owners through the entire short sale process and then the rehab of the homes. Which is why lately I have been researching note investing.

I have already located and and am in contact with almost all distressed home owners in my county. I have details of all of their mortgage notes, history etc. I have contacted and have good relations with all the prominent foreclosure attorneys as well.

My question is:

Is there any way I can use these tools already in the box to give myself a head start in note investing? I know standardly banks do not sell off one or two notes at a time. But if I had connections both with the property owners and the respective foreclosing attorneys and thus also had access to each individual property's assigned asset manager, could deals be made through that avenue?

Considering they have a buyer come to their doorstep with seller and foreclosing attorney on board, willing to pay for a non performing note,  could it sway lenders to sell?

Any answers/comments/advice is appreciated. 

Aloha from Hawaii





Post: Working with administrator on probate shortsale

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

Interesting scenario. Looking to purchase a home in probate, that is underwater and being foreclosed on, and to top it all off, no executor...I'm working with administrator.  I have worked with two court appointed special administrators to probate properties in the past who have agreed to submit my  offer to bank for consideration. On this particular deal, administrator says "no way". It is not worth his trouble.

As appointed administrator I understand that it his job to do whatever is most beneficial or the estate. Why then would he not be willing to allow short sale before it's foreclosed? It would be beneficial for the estate in that all deficiency amount from sale would be forgiven, where as if it is foreclosed bank would come after the estate for the amount short. Wouldn't it make sense in that scenario?

Also as far as I understand administrator would be compensated for his time and efforts by the estate or in some cases by the bank if short sale is approved. Is all this correct?

Anyone have any practical experience or advice on this matter? Thanks

Post: Going after earnest deposit in escrow.

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

Hello everyone and thanks in advance for any pointers or advice.

I, as a seller, have had this home in escrow for over a month. Buyers were qualified and solid offer above asking. Inspection report came after 15 days and all repair requested I agreed to. One of the requests was for a larger catchment tank. (This home is in Hawaii where water comes from rain catchment.) Because offer was well above asking and they seemed serious I agreed and spent 5k for a new tank installed. 

The day all the repairs are completed and tank installed (after $6,000.) they send termination of contract notice, 2 weeks before scheduled close. They claim I broke contract due to the land survey report not being submitted on time. Which is true, I called all surveyors the day escrow opened and due to the location of property the earliest survey could be completed was after the date on contract. My agent informed sellers and their agent of the situation and delay very early on and they said no problem. Unfortunately this conversation was over the phone and not in writing. But they are not denying that they were informed and agreed to the delay. 

Yet still they are backing out citing this breach of contract on my part. I had been in touch with them just a few days before they cancelled, asking them details of how they preferred the catchment installed. They did not mention anything about survey being late on that day, rather they gave me specific instruction where and what size catchment to install. 

Bottom line, I know they have other reasons for backing out but are using the 0-1 as an excuse to try and hang on to their deposit (which is over 3k). I told them I was contesting this and wanted the deposit, to which they responded "Seller broke contract and are demanding deposit returned."

Mediation is suggested in contract if agreement cant be made.

What play do I have here.  

Here is terminology n contract:



K-2 Survey. Within ______________ ( ) days after the Acceptance Date, Seller shall, at Seller’s sole cost and expense, have a land surveyor licensed in the State of Hawaii: (a) survey the Property even if the boundary points are visible and; (b) if improvements exist along the Property line, provide Buyer with a map (with surveyor’s stamp) and accompanying report to show the perimeters of the Property and the location of any improvements in the vicinity of the perimeter Property lines. The survey and map may not address whether improvements on the Property are in compliance with State and/or
County requirements, subdivision covenants, conditions, and restrictions, and/or condominium property regime requirements.



O-1 Termination Due to Default. This paragraph shall not apply to a particular obligation or contingency if Paragraphs O-2 or O-3 have been specifically designated as a termination provision.
In the event that Buyer is in default for failure to perform Buyer’s obligations under this Purchase Contract (Seller not being in default), Seller may terminate this Purchase Contract, and (a) bring an action for damages for breach of contract, or (b) retain the initial earnest money deposit and all additional deposits provided for in this Purchase Contract. However, if the Buyer has performed the obligation prior to Seller delivering written notice terminating this Purchase Contract, then his termination provision shall not apply to such obligation.
In the event Seller is in default for failure to perform Seller’s obligations under this Purchase Contract (Buyer not being in default), Buyer may (a) terminate this Purchase Contract and bring an action for damages for breach of contract, or (b) seek specific performance of this Purchase Contract. However, if the Seller has performed the obligation prior to Buyer delivering written notice terminating this Purchase Contract, then this termination provision shall not apply to such obligation.

Post: SHORT SALE in PROBATE

Sean DoughertyPosted
  • hilo, hi
  • Posts 95
  • Votes 6

Thanks for the replies. I think tho the point of my question has not been addressed. Can I (the buyer) provide funds to the personal rep (seller) without even informing the bank? Given that they are not the legal owners or party who defaulted, there should not be any restriction for them to receive funds from buyer on the side of the deal. 

Anyone?