Trying to buy 5 Estate properties from my fathers estate in Indianapolis, Indiana

[David Rollings]

What is the best way to work with banks on over leveraged properties?  My father passed away on 12/18/2012.  There are 5 properties that had loans against them.  Our estate attorney suggested we "abandon" the properties legally. We did so.  Going on two years later the banks have still not done much of anything with the properties.  The city has boarded one of the houses. 

I have tried talking to the bill collectors who call but have not gotten too far.  The estate has been closed.  I was the executor of the estate.  There are a couple properties I would really like to get.  However I do not want to pay the bank what my father owed on these properties.  Do any of you have any suggestions on dealing with the banks.  It is my understanding the bank will not short sale the properties to me because I am a blodd relative.  On paper it makes sense to keep making the payment dad was making and keep collecting the rent.  It looks to be cash flow positive.  At the time it was more than I could handle.  Personally, I do not want to overpay for a property only because it cash flows on paper. 

Any information you all can provide would be greatly appreciated.

David Rollings

[Clay Manship]

David-

Just an idea here--go after the Note that the bank holds. See if you can buy the Note (and therefore, the mortgage) at a discount. That way, you would "owe yourself" less money than what was owed to the bank. Use a private lender and if the spread is good enough pay them back via the cash flow from the properties.