Is this a good mf probate wholesale prospect?

[Sharlisa Elzy]

Hi, I recently was contacted by a lawyer representing a client who owns a property they received after the death of their mom. I was able to speak with the client personally and we arranged to meet at the property yesterday so I could calculate any repairs that needs to be done. Well, once we met there, the executor was unaware that the city boarded up the property and it's now in receivership due to violations on the property which we briefly spoke about before. He gave me the number of the person to contact. The property from the outside looks like it may be a total gut rehab however there isn't a mortgage on it. I was looking to wholesale this property but I do not know if I should move forward. I don't understand how the executor owns the property but it's in receivership by someone else! Can I make this work?

[Rick H.]

An executor never did "own" the property. An executor is someone named in a will to execute the wished of a decedent. They may or may not have any beneficial interest, however having any does not make them an owner. What dictates their powers are court orders that confirm their capacity, powers and authority to sell or encumber or distribute upon order for final distribution.

A receiver being appointed, in essence, says that the executor fail to sufficiently marshal the estate asset (real estate) and the receivership was established to satisfy the local code enforcement or similar agency concerned with the property. Receiverships are expensive and tend to take a big chunk out of the equity of a property. I agree with previous posts that hanging in there in this file will either yield a deal or a worthwhile education.