Estates that may not have gone through probate

Estates that may not have gone through probate

Washington, DC · Member since 2015 · 139 posts · 102 votes

When driving for dollars, I sometimes find properties where the owner is deceased. Sometimes, these houses have been sitting vacant for years.

I have a few questions about how the process of putting a house like that under contract would work.

1) Is it possible for a person to die owning real estate and no probate process occurs? For some of these houses I find, it seems like the owner died and then nothing happened…like no one got designated to handle anything pertaining to the house, so it just sits there.

2) If it is possible for someone to die and no probate process occurs, if I track down a next of kin and they are willing to become the executor because there’s some cash in it for them, what’s next? I assume that the next step is contacting a probate attorney, but how do they get paid? Are those attorney fees paid when the house is sold or is that an up-front expense?

3) How is next of kin determined when it’s not one of the primary relationships (child or spouse)? For example, homeowner dies and has no spouse or children or living parents, but there are siblings. Or there are no siblings, but there are cousins, aunts, uncles, etc. Assuming I can find “a” family member, what rules govern whether or not that family member can settle the estate? I suspect this may vary by municipality. I mainly look at houses in Maryland, but I do see these kinds of houses in DC, as well.

Basically, what I’m trying to learn is how things work when I find a vacant house of a deceased person and I track down an heir and the heir is willing to cooperate in selling the house. Right now, if I found such a person and they said “okay, I’m on board,” I couldn’t even tell them the very first step in the process.

Any advice is greatly appreciated.

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Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
10y

I would advise you find the expert in your area that specializes in this niche. Partner with them to learn how to monetize these leads. There is way too much there to answer in a sufficient manner to walk you through every scenario of how to work these leads. 

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  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    10y

    I would advise you find the expert in your area that specializes in this niche. Partner with them to learn how to monetize these leads. There is way too much there to answer in a sufficient manner to walk you through every scenario of how to work these leads. 

  • Title Representative · Washington, DC · Member since 2013 · 25 posts · 13 votes
    10y

    Lenzy,

    The short answer to questions 1 and 2  is, Yes, any  those scenarios may exist. 

    The answer to question 3 is governed by the will (if there is one) or the intestate laws of the jurisdiction. If there is no will, in general the intestate law is the order of inheritance is spouse, siblings, parents, next of kin - in that order. And the heirs may share ownership if the person died without a will. There are also rules about children born out of wedlock, half siblings etc. Basically it is case by case - circumstance by circumstance.

    Once you find the next of kin - you need to make sure that you ask all of the right questions. Starting with, is there a will.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    FIRST, access the property tax records.  If taxes are being paid, then the property was likely inherited.

  • Real Estate Investment Attorney · Kingsville, MD · Member since 2016 · 643 posts · 408 votes
    10y

    Lenzy,

         My Investor friends have done these type of deals in the past. The owner has died, there is value in the vacant house, no mortgage and the house will be lost at tax sale. We hired a private investigator to find an heir. The heir is usually thrilled to come into found money. The heir opens up an estate in the State where the property is located. You don't need an Attorney to do this. The Clerk will give you direction and the paperwork needed. The heir is appointed Personal Representative and as part of his duties must notify all the other heirs of the deceased. You would make some kind of deal with the PR regarding the sale of the house as to who would get how much of the proceeds. You could also buy it from the PR but you will need a fair market appraisal for the Court. This process takes time (4 to 10 months depending on the Court). In the meantime, if the property is in tax sale you may have to redeem it. I hope this quick scenario helps. It can be done but it takes time and you can end up wasting your own.

    Rich Baer, Esq.

  • Washington, DC · Member since 2015 · 139 posts · 102 votes
    10y

    @Deirdre Brown, @Jeff B., and especially @Rich Baer, thank you for the guidance.

    Rich, this was exactly what I needed...just a basic framework of what it takes to work these kinds of leads.

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