Probate Property Question?!

[JaMario Price]

So I have a property in that the owner has passed away. The son is now the executor of the estate. The property has a mortgage and I offered the son $75k on a property thats worth $150k. Is there a way I can take over the payments with this property and just give the son $10k? I dont want to wholesale this property, I want to keep it for my self to either rent or put on the mls for a bigger profit. Any suggestions? Or strategies you all would reccomend?! Thanks!!

[Tim Winter]

Have you investigated taking the property subject to? If you've seen the note and payment schedule, and the terms and interest are favorable, that would be the best way, to take over the payments and give the son something for his equity. If they are wanting monthly payments instead of a lump sum, you could talk to them about carrying a 2nd and the rest in cash to satisfy any immediate cash needs.  

If the note isn't good, then the next best thing would be to get a private lender to buy them out, or failing that a traditional loan. All depends on the condition of the property currently. 

Another option would be to wrap the existing loan. Find a good title company and loan servicer that will do this, and if its conventional it should be easy to find. FHA is more difficult but can be done but also more risky. The upside of doing this is that servicer will take your payment, pay out the underlying mortgage, and then pay the son any remaining balance every month. You can get an MLO to underwrite it so give them peace of mind that you're qualified and will make the payments, and this gives your note more worth if they someday down the road want to cash out or sell their interest, or partial interest. The servicer is not necessary if you are good at tracking the payments and the son trusts you enough to do as you say, but most savvy sellers want some guarantee.

One other things to be aware of is that title companies view the Quit Claim Deed to unrelated parties the weakest of title transactions. It does not guarantee, warranty or verify if there is clear title nor clear of any liens or encumbrances. I would recommend getting a Warranty or Special Warranty Deed if you can to protect your interests in the asset so you can keep it. If it later comes out that the son does not have legal title to the property, you can sue for a breach of the warranty.

Many options available, I'd say find the best one that suits your needs and those of the sellers.