REALLY MESSY PROBATE WITH TITLE TWISTS

[Rick H.]

For those who enjoy deceased owner, pre- and post- probate and messy title situations, I offer the following puzzle. I've already drawn my conclusions and know the answers but want BP community to take a shot.

A subscriber and member of my Hunting Club referred a property opportunity via the online submission form.

Ownership had been acquired by five different people by a probate order from many years ago

Each heir had received an undivided 20% interest in the property, however only one of the heirs lived in the property. Hence, the other heirs received no current benefit of their ownership interest.

Old hard money loans still on title but probably paid off.

Lead generator attempted to buy the interests of three of the five. Excluded were the heir (now co-owner as tenants in common). Who lives in property and one owner who has since died.

1) Is this a "wholesale" deal?

2) What can you do with 60% ownership of a single family house?

3) What would be required to monetize those interests?

4) What would be necessary to obtain clear, marketable title in order to sell to a 3rd party?

Your thoughts?

I'm driving the new car (599 Fiorano) up the coast today so I'll check in again tonight.

[Dennis Lanni]

What a fun deal.  I would go for the loan(s) first, what if they are not paid off?  Second I would go for the any piece of the 20% interest (60% is better) & file a partition action;  in the complaint I would state that the heir who lives in the property has already been paid via living there.

Here is my answers to your questions

1) no

2) 60%  with possession you could rent it out

3) collect rent or force a sale

4) court action

*** the twist is the deceased heir's interest*** that's  your wild card that would be nice to have in your pocket, good luck  

ps-- does the winner get to drive your 599 Fiorano???