Estate property in Foreclosure--making a deal beforea DC auction, possible?

[Jeffrey Gordon]

we are looking at a property which is coming up for auction shortly. The creditor has been telling us about it for months. His original debtor passed away and a family member is the personal representative.

The auction is being handled by an established local auction house.

The creditor has told us the personal rep can not cure the default which is about 45% of the market value as is.

We own a very similar property already on the street, we know the buildings, the comps for sale/rent and the rehab budgets intimately

We also like the area as it is starting to really break out.

we are wondering if in a foreclosure auction with an estate/probate/personal rep whether any/all of the parties might be able to consummate a deal prior to the auction.

We are not convinced the personal rep would see benefit in doing so, but we dont have a great feel for whether local laws allow an estate/personal rep handling a foreclosure to sell prior to the auction etc.

any wisdom here?

we would like to not offend the creditor as he is a significant property owner locally and could be very helpful.

jeffrey gordon

[Jeffrey Gordon]

okay upon further research. Seller is an estate's personal rep. and DC is no redemption on foreclosure.

So if we approach the PR about doing a deal before auction I assume the primary hold up might be that there are other heirs or fiduciary issues about selling direct vs using auction to find max value to estate.

in any event I would assume the first step would be to try and reach the PR?

tnanks

jg

[Bill Gulley]

Hi, the executor or administrator has a right in representing the estate to payoff the obligation, if they can, and with court approval if it is the administrator. They can also sell the property, with court approval or after the estate is settled. If the property sells for more than the balance owed, that goes to the estate, so bring that up with the person taking care of the estate. You might inform the note holder that you are paying the note off for the estate if you work out something with them. But you may not have the time, you could just go to auction too. Bill

[Jeffrey Gordon]

hi bill, thanks.
yeah, I am thinking the PR would have cured the default if he could have or wanted to. Creditor says he is difficult. perhaps best to go to the auction and see if we can pick it up for the balances owed.

jg