| |
| |
|
Real Estate Information |
|
|
|
Family Feud with an Auction Deadline - Adventures in Probate/ Estate Purchases
One of our investor students told us of an interesting probate deal or "adventure" they're working on now and while it's a good story, it also illustrates lots of the ins and out of probate or estate issues and purchases. The Seller (we'll call him Scott) co-owned this house with his mom, and he co-signed on the loan with mom. Mom has been deceased for 3 years now. Scott says his sister lives there and is not making the payments, so the mortgage is behind 6 months in payments, and he's ready to sell the house. He said Mom left no will for her estate, but there are 6 other siblings. If that's not enough of an investing adventure for you yet-Scott then tells us that the bank is threatening foreclosure. They're not just threatening?.we discover that the house is scheduled to go to the courthouse steps in 3 weeks. Why would anyone even try to purchase a mess like this with a short timeframe? Well, Scott owes $33,000 + $5000 in back payments on a cosmetic, light fix-up $10k rehab house that's worth about $140,000 when it's all fixed up. So let's do a little math to see if there's just a wee bit of profit in it. ARV $140k minus Rehab $10k minus BuySellHold $21k minus Profit $25k equals MAO $84k So the max we could afford to offer on this house is $84k, and he has to have $38k to cover the mortgage and the back payments, say another $35k so that each Scott and every other sibling/heir gets $5k profit too. That's a total of $73k, still leaving $11k EXTRA profit for the investor!! There IS big money to be made if you understand issues like these! Now, how do we work through the estate stuff. Well first we (or Scott) would have to negotiate this price with all the siblings to reach agreement on their share. Next they'd all have to verify that "mom didn't leave a will". If so, Scott could petition the probate court to appoint him as Administrator of the estate and he'd have to run a notification of the estate ad, and get all the siblings to sign document agreeing to his being made Administrator. Now Scott could sign the Purchase Contract as "Scott, Administrator of the Estate of Momma". If the siblings said "no, Mom DID have a will"?.then we'd spank Scott for fibbing, and see who was appointed as Executor of the estate in her will. That person would then have the court probate the will, and run an ad. Then the Executor would have to sign the Purchase contract as "[Name], Executor of the Estate of Momma", and sell the house and distribute the profit to the sibling/heirs as described in mom's will. In the meantime, don't forget the upcoming foreclosure auction either. It's a race between the probating and the foreclosure to see who will hit the 'finish line' first. So the investor (she can say she's a friend of Scott, just helping out) will need to talk to the lender or their foreclosing attorney, in order to stall the auction. She'll need to get a 'statement of account' to find out what the loan balance is, and also what the back payments, penalties and attorney fees add up to. These additional fees could be paid by the investor as preparation for a subject-to purchase. The risk is that if there is no will AND the sibling/heirs couldn't reach a quick agreement on price, she'd have to keep making monthly payments to the lender to prevent foreclosure but she wouldn't yet own it until (hopefully) the siblings reach agreement and appoint Scott as Administrator. I can hear you saying "but the investor could try for a short sale purchase direct from the lender, and not worry about all these siblings and probate issues"?.problem is she can't get all the borrowers (momma's deceased) to sign all the short sale paperwork, and she doesn't yet have the property successfully probated to have a new legal Adminstrator/Executor that could sign either. So no one can yet legally sell, nor sign short sale paperwork until either estate is probated or the lender forecloses and takes back ownership of the property?.the clock is ticking?we shall see. Best of success & abundance, Lou Castillo FREE! Real Estate Investing Secrets To Earning $100,000 Your 1st Year! -- 11 Overlooked Real Estate Statregies That Will Turn Your Investing Business upside Down And On The Fast Track TO Success...Guranteed! Plus A Bonus Track With A Secret So Successful It Can Double Your Investing Income Overnight! http://www.InvestorSuccessTactics.com
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Purchase Online Tenancy Agreements Buy an on-line Tenancy Agreement now. As a landlord and also as a tenant it is important that there is a comprehensive tenancy agreement in place to protect both parties. Successful Real Estate Investing One of the best roads to wealth in America has always been the acclimation and development of good, solid, income-producing real estate. Real estate ownership is one of the best ways to achieve financial independence for the average person. Real Estate Investors Kick Away $1,000 Those new to real estate investing often fail to take action because they don't have much cash. The truth is that the very best investors got their start when they had little or no money. Selling Your Own Home - Pet Issues If you are selling you own home, you need to consider the effect of pets. People who are working with a real estate broker are sure to get coached about the potential negative effect of pets. Rapid City Real Estate Agents Take me Back to the Black HillsLocated in Western South Dakota, Rapid City is a thriving community with many amenities to offers its residents. This city is nestled among the beautiful Black Hills, offering endless recreational activities for the outdoor enthusiast in the Black Hills National Forest. Escrow Accounts - Are You Paying Too Much? Money in escrow is "dead money". It doesn't earn interest for you and it doesn't reduce your mortgage interest payments. RESPA: The Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. One of its purposes is to help consumers become better shoppers for settlement services. Residential Income Property Financing: Part 2 of 3 Welcome to the second segment of a three-part series about income property. In this second segment we will be discussing financing options for residential income properties as well as the upside (and downside) of owning this type of property. Buying Your First Investment Property "Begin With The End In Mind"I first heard the phrase "Begin with the end in mind" in a Steven Covey book called "The 7 Habits of Highly Effective People". This expression makes a lot of sense because the fact is, you can't get where you're going, unless you know where you want to go. Understanding the Escrow (Closing) Process 1. What is an escrow?Escrow is defined as a process where parties deposit instructions and funds with a "disinterested" third party until conditions of the instructions are met. What to Look for in a Real Estate Agent Real Estate Agents play an essential, critical role in the process of buying and selling a home. You just simply cannot afford to work with an agent that does not exhibit top-scale professional values. Subdividing - But NOT Land! Many people are familiar with the concept of sub-dividing a large piece of property into smaller lots. The same concept can be very profitable in other areas. Investing in Real Estate Profitably: Financing Options for Purchase of Rental Houses, Part 1. This is not an article about tricks for 100% (no money down) financing. Even if you do take advantage of various no money down strategies from time to time, these strategies are not generally applicable when you begin investing systematically in multiple rental homes with the goal of making significant rental income. Secrets of Making Money from Real Estate - Part 2 Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender. Real Estate, Real Property and Leased Land; Definitions, Discussion and Explanations Delaware, and the rest of the original British Colonies, has some land that is leased rather than owned by the residents of that land. Much of it is not evident to the casual observer. How to Own a Dream Home in Spain Every year hundreds of thousands of foreign visitors travel to Spain to delight in the fantastic weather, stunning natural landscapes, excellent entertainment options and superb Mediterranean beaches. Many of these people dream of one day owning their own property in Spain, in fact Spain is now one of the most desirable second home and retirement destinations in the world. How To Go About Selling Your Home On Your Own In days of booming real estate, you would think that selling a home shouldn't be too much of a task. And if it's going to be that easy then why not do it on your own and save yourself on thousands of dollars in commissions. Dont Overpay for a House, Even in Todays Market If there's one thing American investors love, it's an over-inflated market. Which is why they keep buying houses and new ones keep coming onto the market. Home Not Selling In Todays Hot Market? Tips and Ideas to Help You Sell So, your selling your home. Prepare yourself both physically and mentally for the agony of the endless phone calls and interruptions to your daily schedule. Where Does Your Real Estate Commission Fee Go - Why is The Commission so HIGH? Many who have bought and sold properties through Realtors numerous times; even many real estate agents themselves, don't know where the commission money goes. After all, when a property sells for hundreds of thousands of dollars and the commission is tens of thousands of dollars, it seems like there is a terrific amount of money charged as commission -- and there is.
|
 Home  Contact
|
| Real Estate Information © 2006 |
