Contract for Deed - Estate Sale - need advice

[Shane Johnson]

I found an off market deal in my back yard that I am pursuing heavily.

Back story: House was owned by same lady for over 30 years, rented by brother in law, no mortgage/liens, and currently vacant. Two survivors, one out of state, the other in the hospital.

The deceased's estate needs to be closed (already filed extension in February) by June 22nd.

The family is trying to fix it up a little (using a local handyman) and sell, but the house needs a little bit of work, one of them lives out of state, the other is not currently capable of handling the estate affairs due to health issues. They have picked up the inside, and done a little painting, but it is far from turnkey first time buyer ready in my opinion.

Right now the state is telling them they need to close the estate, so the property needs to be transferred out of the deceased's name. My question is, can this be easily transferred to the daughters name, and I could set up a contract for deed with her? How would I go about handling this? I am also slightly worried if I lay this out for her, and provide her the tools, she could market it to others this way. I have a suspicion though that she would rather wipe her hands clean of it and have the cash though. We will see...

Also, if she is not interested in CFD option, and I can finance it with 20% down, how stringent are lenders about issues that the house may have? I don't have experience buying houses with investment loans/20% down, but I would think their inspection requirements are less stringent than on a FHA/USDA or even a regular conventional owner/ocupy loan these days.

Any and all advice is appreciated. The least out of pocket the best, especially as I found out they own 2 houses they need to sell, and I would like to make the 2nd work as well. Thanks in advance!

[Bill Gulley]

I assume there is no bank involved, it's owned free and clear.

You can get an option on the property from her now subject to her receiving the deed. If the heirs agree she can simply deed the property in her name. After that you buy with a CFD, since this is out of an estate of an OO, the Safe`Act won't apply, but double check in your state. Might be better to seller finance it with a note and DOT than a CFD, maybe 10% down. Your pitch can be I gotta fix it. If you're holding, you cant try to refi a year later, if it's a flip, just sell. Good luck! :)