All Forum Posts by: Sean Dougherty
Sean Dougherty has started 55 posts and replied 100 times.
Post: Preforeclosure-Probate-Shortsale....ALL in one!!!
- hilo, hi
- Posts 102
- Votes 7
Quote from @Ken M.:
Quote from @Sean Dougherty:
I have a property in the pipeline where the owner is deceased, and property is in preforeclosure. No equity in the home. Would the foreclosing lender allow me to pay the PR of the estate in order to go through with a short sale?
I have seen lenders allow money to be paid to comissioners as well as special administrators. Why not to PRs? They are not the owners of the property. Rather they are acting like a comissioner in order to sell the property and avoid the foreclosure.
Post: Preforeclosure-Probate-Shortsale....ALL in one!!!
- hilo, hi
- Posts 102
- Votes 7
I have a property in the pipeline where the owner is deceased, and property is in preforeclosure. No equity in the home. Would the foreclosing lender allow me to pay the PR of the estate in order to go through with a short sale?
Post: Can personal Representatives be Paid in a Short Sale Transaction?
- hilo, hi
- Posts 102
- Votes 7
I have a property in the pipeline where the owner is deceased, and property is in preforeclosure. No equity in the home. Would the foreclosing lender allow me to pay the PR of the estate in order to go through with a short sale?
Post: Foreclosing before probate opens?
- hilo, hi
- Posts 102
- Votes 7
Quote from @Ken M.:
Quote from @Sean Dougherty:
Quote from @Ken M.:
Quote from @Sean Dougherty:
My question is this:
can they foreclose BEFORE the probate opens?
Thanks Ken I appreciate the reply. Considering that they can foreclose even before probate is opened, this puts the airs in more urgency to sell before the foreclosure.
Are the heirs able to sell the home if there is no probate opened and PR assigned?
There are actually two different things.
1. Who owns the property
2. Who is on the loan
These are very, very different.
"Who can sell a property"
Only people on title, or
someone with power of attorney if the owner is still alive, or
if the property is in a trust, the trustee can sell, or
someone appointed by probate court.
If it it a Deed of Trust state, the lender can sell under certain circumstances, such as non-payment, to protect their interests. It is a process that requires following a specific set of steps determined by each state.
A quick search shows Hawaii is a Mortgage state. That means if the property is in Hawaii, the lender must sue to foreclose, which is a much longer process. A personal representative can be appointed by probate court even while the lender is going through that process. The property belongs to the estate and can be sold, even when in foreclosure, until the lender successfully completes a foreclosure sale.
It isn't hard for a relative to get appointed by the court and then they have legal right to sell along with the legal responsibilities of probating the estate
Many lenders will accept payment from relatives living in the property as though it were from the borrower
The clock starts ticking from when the first payment was missed.
Any missed payments along the way get added to the reinstatement amount.
Those debts do not go away, they just get added to how much you need to make the lender happy again.
Here is the procedure for Hawaii
https://www.alllaw.com/articles/nolo/foreclosure/hawaii-fore...
Thanks again Ken. That is what I thought as well. Obviously property cannot be sold by the heirs unless they are Personal reps to the estate.
Still though I have alot of experience locally with probate/foreclosure cases. In all foreclosure cases I have seen where the borrower is deceased, the lender themselves must petition the court to open probate so that they are able to complete the foreclosure process.
I have never seen a case where the bank was able to foreclose on a deceased borrowers home without probate opening and serving the papers to the PR or a special administrator.
I have looked at many proceedings and as soon as the foreclosing lender becomes aware borrower has passed away they then contact the PR. Or if probate is not yet opened, the lender themselves become the petitioner.
Any thought on this?
Any feed back on this?
Post: Foreclosing before probate opens?
- hilo, hi
- Posts 102
- Votes 7
Quote from @Ken M.:
Quote from @Sean Dougherty:
My question is this:
can they foreclose BEFORE the probate opens?
Thanks Ken I appreciate the reply. Considering that they can foreclose even before probate is opened, this puts the airs in more urgency to sell before the foreclosure.
Are the heirs able to sell the home if there is no probate opened and PR assigned?
Post: Foreclosing before probate opens?
- hilo, hi
- Posts 102
- Votes 7
My question is this:
can they foreclose BEFORE the probate opens?
Post: Foreclosing before probate opens?
- hilo, hi
- Posts 102
- Votes 7
Can a lender foreclose on a home if the owner is deceased and probate has not been opened? Or is it required that probate be initiated, and PR's assigned before the foreclosure can take place?
Hi all,
I have numerous leads where the homeowners declared chapter 7 bankruptcy 5-10 years ago. Since then, they have severed all ties with the homes. And only recently has the foreclosure proceedings begun.
The lender is not looking to collect any debt from them as that has all been relieved. The lender is simply looking to repossess the property through the foreclosure process.
Are the homeowners at all affected if the home forecloses at this point? Will their credit be affected? Could they short sale their home at this time?
Thx.I'll speak with their lenders and my title co.
Sorry I was unclear. Buyer is putting $50k down. So loan will be for $450k.
Quote from @Bruce Lynn:
Amazing lender is allowing 2% down? That's rare.
You could probably do a 2nd for the $10,000.
Talk to your title company or title attorney and have them draw up the deed of trust and loan terms for the 2nd. Typically high interest like 10%-14%, maybe more if it is a 2nd. Maybe depends on value of the house and credit worthiness of the buyer.
Also 1st lienholder may not allow, depends on who that lender is and what requirements they have. Some want to see skin in the game. But you've already found one that will allow 2% down, so maybe they will also allow borrow to borrow for the rest.
I'm not a lender, but chances are 2nd needs to be disclosed on their credit report and to the 1st. Normally they're asking where those funds came from. Some allow gifts, but need a gift letter.
Maybe tell us more about the deal? Whats the ARV? Good shape or bad shape? Hard money for the 1st loan or normal bank financing? Local bank or national lender? Reno needed or move in ready? If reno, where are the reno funds coming from?
Thx Bruce,
Sorry, not sure how the 2% interest rate idea snuck in there. No. This is a conventional loan, not sure what the rate is.
Home is brand new. Will appraise over our rock bottom selling price of $500k but buyer is "making the case " that he only will qualify for $490k, DP included.
So I thought to offer the option of "I will carry the remaining $10k and work out terms favorable to both of us."
Question is, how to transact that? 2nd mortgage, lien, separate contract, include in escrow or private notarized contract between buyer and seller? Ect.