New to the site, and enjoying all the posts so far. I’m seeking some advice on a deal I’m working on.
I’ll summarize the details for you. I got a call from one of my bandit signs.
Located a great property, the owner is deceased, no living heirs and the Executor no longer wants to be
Hassled by the bank or maintain the property. He decided to let the bank foreclose and the auction was scheduled, then the morning of the auction it was called off and all commination ceased with the bank,
this was two yrs ago.
I have suggested we resume discussions with the bank, and from those conversations the bank suggested we complete a short sale application which we are in the process of doing.
However, the application is geared toward the borrower so my questions would be this,
1.) how does the Executor complete this form ? It only borrower/co-borrower
2.) The application is requesting personal financial history, the Executor has no interest providing this information since they aren’t the mortgage holder, and have zero financial responsibility regarding the property.
How do I overcome this objection and submit to the bank ?
Thanks Folks ! Looking forward to your reply !
"Borrower has passed away and the estate has no ability to maintain or pay for the property"!
“No financial history available as original borrower passed away and no records known to exist”
The bank (Lender) obviously knows their borrower is dead and I would guess the original foreclosure
was stopped because of probate, so it should be pretty easy for the bank to bypass most “Borrower” requirements as the original borrower no longer exists!
You might want to include the original borrowers death certificate and obituary in your package if you can find them!
How much is owed vs market value now?
If there is any equity, you might pay the full price of the mortgage + closing costs and not hassle with a short sale.
Executor should have authority to sell the asset to settle the estate.
Yes, I would try very hard to avoid a short sale. These are a real pain. If you are the buyer, just submit an offer through the Executor. Knowing how much is owed will give you an edge up on knowing what to offer. I would also recommend getting a title search to make sure there are no other liens lurking around the property.
If there is an Executor, it is probably in probate with an assigned lawyer. Executor usually can get up to 10% of the sale, provided a document is submitted asking for this. The Executor has to have full authority in order to sell the property without court permission. If there is no Executor, the court assign an Administrator. You really need to get a real estate agent who knows about probate. He/she has to present your offer to the judge, if this property is in probate.
Its better you speak to a Short Sale professional.