InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Sale of inheritable expectancy.. Posted by Richard Nostrand on June 09, 2003 at 3:42 PM In Reply to: Re: Sale of inheritable expectancy.. posted by Rick Harmon on June 09, 2003 at 10:12 AM : I'm not certain about the which State this potential probate concerns, so I wish to comment as if it's a California matter. : This plan has some loose ends. If the decedent has many other debts, i.e., Medi-Cal (Dept of Health Service), burial costs, secured and non-secured creditor claims, : the estate, and hence theheirs, may have little or no equity. The biggest problem that we encounter in dealing with these situations is that if you purchase the heirs' inheritance (we use an assignment of their distributive share - haven't seen Ward's document before) you may be buying "nothing." : The alternative is to purchase the property from the Administrator, once appointed, and depending on their court powers, may be able to sell the property to you with marketable, insurable title. However, the drawback is that the Admin. has a fiduciary duty to all parties, creditors included, and must be accountable to all. : Also, the attorney will be concerned about representing his/her client, the Administrator, not so much the heirs, and clearly not an assignee. : Frankly, this Catch-22 is something that leaves me uncomfortable. If you have yourself appointed, you can control the deal but are open to lawsuits. If the Admin. is someone else, not only are they exposed but it may be harder to control and close the deal. : Rick Rick, I'm in the State of Florida. The heirs have told me that there are no other debts other than the mortgage on the house. The value of the house is in between $110K - 120K, the principle balance is $62K and reinstatement we're guessing is around $7K and the 2 children will get about $2K apiece. The problem that we have is that they have not even started probate yet and we have stated to them that we would handle this. I do not want to be the personal representative as that is a conflict of interest. Being that the estate less the mortgage owed is less than $60K, can we do Family or Summary Administration instead of Formal Administration. I do not mean to ask so many questions. I just want to be sure that this is a viable deal before we start the legal process. Thanks for all your input. Richard Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I'm not certain about the which State this potential probate concerns, so I wish to comment as if it's a California matter. : : This plan has some loose ends. If the decedent has many other debts, i.e., Medi-Cal (Dept of Health Service), burial costs, secured and non-secured creditor claims, : : the estate, and hence theheirs, may have little or no equity. The biggest problem that we encounter in dealing with these situations is that if you purchase the heirs' inheritance (we use an assignment of their distributive share - haven't seen Ward's document before) you may be buying "nothing." : : The alternative is to purchase the property from the Administrator, once appointed, and depending on their court powers, may be able to sell the property to you with marketable, insurable title. However, the drawback is that the Admin. has a fiduciary duty to all parties, creditors included, and must be accountable to all. : : Also, the attorney will be concerned about representing his/her client, the Administrator, not so much the heirs, and clearly not an assignee. : : Frankly, this Catch-22 is something that leaves me uncomfortable. If you have yourself appointed, you can control the deal but are open to lawsuits. If the Admin. is someone else, not only are they exposed but it may be harder to control and close the deal. : : Rick : Rick, : I'm in the State of Florida. The heirs have told me that there are no other debts other than the mortgage on the house. The value of the house is in between $110K - 120K, the principle balance is $62K and reinstatement we're guessing is around $7K and the 2 children will get about $2K apiece. The problem that we have is that they have not even started probate yet and we have stated to them that we would handle this. I do not want to be the personal representative as that is a conflict of interest. Being that the estate less the mortgage owed is less than $60K, can we do Family or Summary Administration instead of Formal Administration. I do not mean to ask so many questions. I just want to be sure that this is a viable deal before we start the legal process. Thanks for all your input. : Richard : Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455