Probate

Real Estate Investing Real Estate Law
1

Here are some details:

Wyoming house in probate (switched to simplified probate)
It is in foreclosure (bank changed locks, winterized house, taking steps to move house contents into storage)
1st of 130k
2nd of 20k
5k arrears
repairs 5k
after repair value 210k
Exit would be to fix and sell immediately

I’m familiar with subject to but have never dealt with a sub-2 house in probate and foreclosure.

Tips or suggested resources would be appreciated!

2

Subject to works as well in probate as it does when someone is alive, in fact, better (since the borrower who’s liable it dead). You need the personal representative of the estate to sign the contract and closing docs.

Looks like gross profit = 210 minus 160 = $50k. Carrying costs, closing costs, broker’s fees, concessions, etc, you should net $25-30k.

$5k arrears sound low if its in foreclosure - attorney fees?

3

Probate

Yes 5k arrears I’m sure is low. I don’t have all the details.

Is it advisable to try a short sale on the second of 20k in this scenario?

Thanks

4

Sure, worth a shot. They are in danger of getting wiped out.

5

Personal rep of estate in probate deal

At what point in the probate process can the personal representative of the estate sign the contract and closing docs?

6

This depends on whether the process is court supervised or not. If not, the PR can sign without court approval. The PR must have been appointed with “Letters of Administration”. Ask the PR for a copy as proof.