All Forum Posts by: Dave Metsker

Be PATIENT, avoid POSSIBLE PAIN.

In common terms, they are selling "one-half" of a house; the technical title is "50% interest, as tenants in common".  In most cases, if the buyer is not a family member or spouse, he would file a suit for partition, wherein the court forces the property to be sold, and the proceeds divided 50/50.  The ideal buyer, other than a family member, is an experienced, aggressive investor.   Given the opportunity, with the right house, at the right price, this is how I would do it.

Early possession may require the PR to post a bond, which would be an expense to the estate.  If there is no reason to close early, just be patient.

You may make a contract with the heir(s) before, during, or after the probate.  Once in contract, I sometimes give the heir(s) some advance money, as part of the purchase price.  If the estate is cash poor, this helps greatly, in order to have my low offer accepted.

The only way I know to transfer the property directly from the probate estate to your buyer, thus avoiding a double closing, is for you to buy the beneficial interest of the heir(s), become the PR yourself, thus being in full control of the estate.  I am doing one just like that right now.

If this is not possible, as the probate appears to already be open, and if there is sufficient profit in the deal, just close in your name, and then sell to the investor buyer, using the same title company.  When I was in California, years ago, you could buy a binder title policy , to be used in the second (flip) transaction, for a 10% added fee on the original title policy.  Sadly, that option is not available in Oregon.  (But, we don't pay sales tax either, which is a bonus).

 No knowledgeable investor would accept the property on a (Personal Representative) transfer deed, without title insurance.

@Ocie Gibson

Here is how I am doing a similar (FHA) foreclosure/probate. I gave the heir $1000 up front, and in return, he assigned his (future) beneficial interest to me; I become the PR and set up a restricted account to receive payment as soon as the property sells, which will still be within the 4-month advertising period. The lender gets paid off at closing to the retail buyer; I get my profit, and the heir gets his balance due, later, after the probate closes. My total up-front out-of-pocket expense, under $5000, and no double closing. In your case, charge the probate costs to the heir, unless you have it built into your profit.

@Chavis Atkins

The parents are first in line as heirs.  All they need to do is to sign the Affidavit of Heirship and the deed, in order to transfer the property to you.  Otherwise, if they will not sign these 2 documents, they must sign another document which transfers their interest to the sibling.  This way will probably require a full probate, which you want to avoid.  Offer some money to both the parents and the sibling, in order to use the first option.

It is possible that the probate court determined that the estate (house) was "insolvent", due to taxes and maybe Medicaid liens.  When I take over a house in probate with these issues, I just rent it on month-to-month, until the lien forecloses, which could take months or years, and in some cases, the lien will never foreclose, or if it s a judgment, it will drop off after 10 years.  Always look for alternate exit strategies, for problem properties.

@Chavis Atkins,

In this case, the intestate (no will) heirs are the parents.  Contact Mike at Eagle Land Title; he and his staff attorney will do the job smoothly for you, at very reasonable cost.

I stand with @Rick H. 100% on this. If all the heirs are in agreement, the personal representative should honor your contract, and transfer the property to you, when it is authorized by the court.