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: Follow up to the post on probate.. Posted by Rick Harmon on September 06, 2003 at 7:45 AM In Reply to: Follow up to the post on probate.. posted by Dave on September 06, 2003 at 2:12 AM : Hi, : If the house is 2 weeks away from being sold at auction, and the owner of the house has been dead for the last 9 months, how do you find out who's in charge of the probate sale? would you negotiate with that person directly in terms of buying the house, or do you still have to deal with the heirs of the house. I've got a house in this situation right now. There's about 200k of equity in the house, the only problem is, I have to find out who has the power to deal the house and strike a deal. Thank you for taking your time to read and answer these posts. : Dave Dave- As with any situation involving the courts, it's always helpful to know what State your matter is in because laws do vary. Accordingly, I'll speak from my experience with California probates. I've outlined below all I know you can do to obtain probate property. There are many pitfalls and you can take a whole separate course on the topic (my friend Jim Banks gives a 3 day bootcamp for about $6,000; but even he doesn't know how about some of my "probate acquisition secrets" below). To start, Go to the local probate court (Superior Court here). Use this tactical plansheet as a checklist, if you want. You have much work ahead in a short time but the equity/profit potential sounds high. I) If No probate open- A. If decedent left a Will, determine if valid and buy from heir(s) B. Properties sometimes left to charities who prefer cash equivalent to realty C. If no Will (“intestate”), use formula to determine each heir’s % of share D. Purchase inheritance from heir(s) via assignments of distributive shares 1. Influence who will be the P.R. (who you can work with) 2. P.R. has fiduciary duties to creditors and heirs alike 3. Court looks closely at all sales (and assignments, too) E. Retain attorney specializing only in estate law to probate for you F. If time is of the essence, attorney may shorten time to sell via applying for Order giving Administrator Special Powers (only if last resort) E. If small estate, use Probate Code §13100 re: Succession to Real Property under $100,000 to bypass full probate proceeding II) If in Probate now A. Buy from Executor/Administrator (Personal Rep. or “P.R.”) via contract 1. Full Power (no Court Order needed if no objections from heirs) 2. Limited Power requires Court Order confirming sale a. Court sales subject to overbid by other buyers b. Court confirmation may take 2-3 months to get Order! III) Property with loan in foreclosure A. Buy at trustee sale B. Buy defaulting Trust Deed and Foreclose as beneficiary C. Buy Junior T.D. and foreclosure due to breach of Sr. T.D. NOD D. Buy R.E.O. from lender after property reverts back IV) Title held in a trust A. Purchase realty from successor trustee who has Power of Sale in Trust B. Obtain Court Order if no Power to Sell clause in trust V) Judicial foreclosure A. Purchase judgment lien, record abstract, perfect via Writ of Execution B. Purchase creditor’s claim and absorb equity C. Find legal claim to title and file Quiet Title Action in Superior Court I know it's a lot to absorb but I've laid it our for all to see. I sure as heck hope this helps! Rick Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi, : : If the house is 2 weeks away from being sold at auction, and the owner of the house has been dead for the last 9 months, how do you find out who's in charge of the probate sale? would you negotiate with that person directly in terms of buying the house, or do you still have to deal with the heirs of the house. I've got a house in this situation right now. There's about 200k of equity in the house, the only problem is, I have to find out who has the power to deal the house and strike a deal. Thank you for taking your time to read and answer these posts. : : Dave : Dave- : As with any situation involving the courts, it's always helpful to know what State your matter is in because laws do vary. Accordingly, I'll speak from my experience with California probates. : I've outlined below all I know you can do to obtain probate property. There are many pitfalls and you can take a whole separate course on the topic (my friend Jim Banks gives a 3 day bootcamp for about $6,000; but even he doesn't know how about some of my "probate acquisition secrets" below). : To start, Go to the local probate court (Superior Court here). Use this tactical plansheet as a checklist, if you want. You have much work ahead in a short time but the equity/profit potential sounds high. : I) If No probate open- : A. If decedent left a Will, determine if valid and buy from heir(s) : B. Properties sometimes left to charities who prefer cash equivalent to realty : C. If no Will (“intestate”), use formula to determine each heir’s % of share : D. Purchase inheritance from heir(s) via assignments of distributive shares : 1. Influence who will be the P.R. (who you can work with) : 2. P.R. has fiduciary duties to creditors and heirs alike : 3. Court looks closely at all sales (and assignments, too) : E. Retain attorney specializing only in estate law to probate for you : F. If time is of the essence, attorney may shorten time to sell via applying for Order giving Administrator Special Powers (only if last resort) : E. If small estate, use Probate Code §13100 re: Succession to Real Property under $100,000 to bypass full probate proceeding : II) If in Probate now : A. Buy from Executor/Administrator (Personal Rep. or “P.R.”) via contract : 1. Full Power (no Court Order needed if no objections from heirs) : 2. Limited Power requires Court Order confirming sale : a. Court sales subject to overbid by other buyers : b. Court confirmation may take 2-3 months to get Order! : III) Property with loan in foreclosure : A. Buy at trustee sale : B. Buy defaulting Trust Deed and Foreclose as beneficiary : C. Buy Junior T.D. and foreclosure due to breach of Sr. T.D. NOD : D. Buy R.E.O. from lender after property reverts back : IV) Title held in a trust : A. Purchase realty from successor trustee who has Power of Sale in Trust : B. Obtain Court Order if no Power to Sell clause in trust : V) Judicial foreclosure : A. Purchase judgment lien, record abstract, perfect via Writ of Execution : B. Purchase creditor’s claim and absorb equity : C. Find legal claim to title and file Quiet Title Action in Superior Court : I know it's a lot to absorb but I've laid it our for all to see. : I sure as heck hope this helps! : Rick 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. Read our privacy policy.

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