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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Surplus funds of heirless (not Posted by Rick Harmon on December 22, 2003 at 12:08 AM In Reply to: Re: Surplus funds of heirless (not posted by Chris on December 22, 2003 at 9:40 AM : Thank you both for the replies. : Rick, when you mention that your PA has allowed a house w/ a 2nd mtg : you service to go into foreclosure, what difference does it make in : terms of the amount that the estate ultimately receives? : What I mean to say is, is it the responsibility of the PA to avoid foreclosure? : Let's say a vacant house w/ big equity in probate goes to FC auction and a buyer pays 80% of the retail value. I think we can also assume that that would be approx. what an investor would pay at an estate auction held by the PA. : The price paid in either scenario would be similar, thus the funds paid to the estate would be almost the same, save additional fees the estate would lose out on if it went to foreclosure. : So what difference would it make to the estate or the PA? : Which comes back to the original intent of my post, which is to find out if the PA has any incentive to sell to me a property which is headed to auction in a few weeks. : I've recently found two which are scheduled to be foreclosed on in January and have contacted the PA's office to see if they would sell to me before the auction. So far, I've been stonewalled, and they don't seem to care either way. Would it be a viable strategy to continue pestering them, or is it a dead end? ++++++++++++++++ Chris - I don't know if the PA's care or not however, it DOES make a difference as to whether or not they let a property go to sale. Here's why: 1) If a high equity property goes to sale, there's no guarantee that the auction price will be substantially greater than the debt resulting in surplus funds. While likely, it's not definate. 2) PA's, like all administrators, have a fiduciary duty to protect or "marshall" the estate assets so that they are not jeopardized. 3) Most counties DO have money to keep loans current. Why they don't seems to me to be because of bureaucratic problims between the PA's office and the acconting office (the people who cut the checks). 4) You're probably not the only person circling this property and calling the PA's office. 5) PA's usually have a property [mis]management department that handles these things (in theory, anyway) 6) Most big Counties have contracts with R.E. Auctioneers like Kennedy-Wilson that handle the selling. If your PIQ is local, trying contacting Rhett Winchell at K-I and ask him about the lowdown. Overall, I think you've got the same problem that we all do, and that is that there are too many people chasing too few properties and paying way too much. Frankly, I'd focus more on the weird deals that other people don't know how to work. Rick Follow Ups: Re: Surplus funds of heirless (not Chris 6:47 PM, 12/22/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Thank you both for the replies. : : Rick, when you mention that your PA has allowed a house w/ a 2nd mtg : : you service to go into foreclosure, what difference does it make in : : terms of the amount that the estate ultimately receives? : : What I mean to say is, is it the responsibility of the PA to avoid foreclosure? : : Let's say a vacant house w/ big equity in probate goes to FC auction and a buyer pays 80% of the retail value. I think we can also assume that that would be approx. what an investor would pay at an estate auction held by the PA. : : The price paid in either scenario would be similar, thus the funds paid to the estate would be almost the same, save additional fees the estate would lose out on if it went to foreclosure. : : So what difference would it make to the estate or the PA? : : Which comes back to the original intent of my post, which is to find out if the PA has any incentive to sell to me a property which is headed to auction in a few weeks. : : I've recently found two which are scheduled to be foreclosed on in January and have contacted the PA's office to see if they would sell to me before the auction. So far, I've been stonewalled, and they don't seem to care either way. Would it be a viable strategy to continue pestering them, or is it a dead end? : ++++++++++++++++ : Chris - : I don't know if the PA's care or not however, it DOES make a difference as to whether or not they let a property go to sale. Here's why: : 1) If a high equity property goes to sale, there's no guarantee that the auction price will be substantially greater than the debt resulting in surplus funds. While likely, it's not definate. : 2) PA's, like all administrators, have a fiduciary duty to protect or "marshall" the estate assets so that they are not jeopardized. : 3) Most counties DO have money to keep loans current. Why they don't seems to me to be because of bureaucratic problims between the PA's office and the acconting office (the people who cut the checks). : 4) You're probably not the only person circling this property and calling the PA's office. : 5) PA's usually have a property [mis]management department that handles these things (in theory, anyway) : 6) Most big Counties have contracts with R.E. Auctioneers like Kennedy-Wilson that handle the selling. If your PIQ is local, trying contacting Rhett Winchell at K-I and ask him about the lowdown. : Overall, I think you've got the same problem that we all do, and that is that there are too many people chasing too few properties and paying way too much. Frankly, I'd focus more on the weird deals that other people don't know how to work. : 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

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