All Forum Posts by: William D.

To add another layer of analysis, if the property does go REO as referenced above you could attempt to make an offer. Sometimes foreclosure actions are brought in the name of the servicer who will quitclaim the property to the investor for REO purposes. If the investor/servicer is a portfolio lender you may be able to make a direct offer to them or at least find out their intentions. They may say wait and talk to the real estate agent when it is listed but I have seen instances where offers were at least considered post-title vesting and pre-listing.

I would take a walk down to your county/town clerk's office and see if there is a quit-claim deed from servicer to investor.

I don't claim to be an expert in probate procedures but I recently purchased a property that required probate court approval (I imagine factually the situation is similar to yours).

One piece of advice, which helped me, was to be very prepared regarding substantiating the less than appraised value purchase price. I had a hearing in front of the judge and was able to provide updated MLS listings and estimates from contractors on their letterhead for repairs.

The State (which had a lien on the property) actually objected to the low purchase price but ultimately the judge approved the sale and we were able to close. Had I not been prepared with evidence I wonder how the judge would have ruled.

Moral of the story - be extra prepared.

The conveyance from Husband to Seller could be considered a preferential transfer if he files bankruptcy shortly after. Ultimately, the bankruptcy trustee may seek to void the transfer so I would want to make certain you had professional representation and a title policy in the event there were any issues.

There is absolutely no reason why you need Legal Zoom to be your registered agent for service. They low ball the organization cost in the hope that they make money on incidental fees such as agent for service. While most attorneys charge more for the organization they will act as the agent for service for free. It's actually a shame people even consider using Legal Zoom as agent for service instead of building a relationship with a local attorney.

Lisa,

Unfortunately, it may depend on who the investor of the note was who foreclosed. If it was a GSE or HUD you may have some of the options described above -- along with the potential for a cash for keys offer. The best thing you can do is pay attention to all notices and ask as many questions as you can (while looking for a new place to relocate to).

Good Luck.