Advise needed to purchase problem property

[Nathaniel Kamp]

Hello, Im hoping to get some inside on a particular situation that has been presented to me. We have a house in the neighborhood who's owner recently passed. Her caretaker has decided to take over the property and is now an active squatter on the residence and has become quite the problem child in the neighborhood. We have recently been informed that the lady who passed did not have a will in place and her daughter and son want nothing to do with the property. We were informed that the property still has a mortgage of around 80k and the ladys children plan on letting the bank take the property. They are two (almost three) months late on mortgage payments. I am interested in purchasing the property and was wondering my best course of action at this time. Should I attempt Sub-2 or contact the bank and try and work out agreement before foreclosure? Will the house go into probate? Hoping someone can give me some guidance to the situation. I am a contractor and we live in a great neighborhood so the house would be a great investment if we can purchase at the right price. as it sits the house is prob worth 100-150k. Thank you!

[Mitch Messer]

@Nathaniel Kamp This sounds like an opportunity worth exploring, but time is not on your side here!

First, the bank won't even talk to you without some formal authorization from the owner's estate.

Since the owner died intestate, her estate will have to go through probate. You'll want to talk to a local probate attorney to see how much time that could take.

If the squatter is not making mortgage payments, you've got perhaps another month or two before the lender begins foreclosure proceedings.

In your situation, I would approach the squatter to see inside the property to assess the condition. I would express my interest in buying the house. I'd share that if I did, I'd be prepared to pay them to vacate. (I would not specify how much.)

If the property needs a ton of repairs, then even buying it subject to the existing mortgage may not be enough to make this a viable deal.

You need more info, and fast!

Good luck!

[Minna Reid]

There's nothing you will be able to do unless the heirs agree to go through probate to get ownership of the property and then sell it to you. Zero. The lender wont talk to you without the owners written authorization, and the lender does not own the property to sell it to you. 

[Phillip Dwyer]

Look into how your county handles properties of deceased residents who pass without a will or trust.   They should have a process for this that will likely involve probate.

[Sharon Porter]

Thank for that information as I am having the same problem but the family is still in the property and won't respond to the attorney that send them a lot of letter and phone call.