Probate offer to buy subject-to existing loan

[Nixon Vayupak]

I need some guidance to see how this can work.  I understand using the "subject to" approach in regards to foreclosures or if the seller just wants completely out from his property.  But how can one apply this creative approach in regards to Probate?  Just by thinking out loud, since the owner is deceased and there is nobody on title except for himself. Wouldn't going into probate inform the lender that the owner of the property is deceased and the bank should start making preparation in retrieving full payment? The reason, why I am asking is that I encountered and interesting lead, where the owner has been deceased for 6 months now and that their daughter has been making mortgage payments ever since.  They have yet opened probate since they are afraid of losing the fathers property at that time.  Now time has changed and they are considering they want out.

[Rick H.]

Hey you two! Since you were both at my Probate Real Estate for the ADHD Investor talk in March, I figure you'd know how to set this up.

Deceased owner, pre-probate, defaulted mortgage.

From the asset perspective, the secured lender can foreclose and complete sale to 3rd party bidder or property revert to lender. No probate required. 

Depending on the total date of death value, a formal probate may or may not be required to control transfer (sell) property.

I've purchased many pre-probates sub2. I've structured a number of different ways, sometimes to be creative or out of boredom. There needs to be lots of equity to make worthwhile, since there will be expense of court filing, likely attorney cost, at minimum. 

If you agree to become appointed PR, you take on the fiduciary liability for payment of estate debts. 

Once capacity, powers and authority to act are established, absent court sale confirmation requirement as with limited powers, it's like any other sub2 purchase. Bring it current and close (or close then bring current). 

I can show some fancy footsteps in the dance but Bill G. would call me out on my BS (due to flapping my arms and biting my lower lip). 

It's really not that difficult if you think in terms of a living seller. If that living seller had another sign their paperwork under POA, concepts is mostly the same if buying the asset.