I live in Florida and have a female friend who is close to going into the pre-foreclosure phase. She has no assets, owes everybody and doesn't have the financial resources to keep up her bills. Her electricity was cut off and she is 3 months behind in the mortgage. I was thinking of trying to buy the property in the pre-foreclosure phase. The problem I see is in the title. The house is in her mother's name but both her mother and father have been dead for over 3 years. She has not bothered to go through probate at her mothers death and has been paying the bills as if nothing has happened. The house is not in her name, but her deceased mothers. When the foreclosure process starts, how do I approach her about this title problem and what can I do? She has no money or intention of wasting money now on going through probate just to lose the house. Any suggestions?
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Two questions
Was the house left to her in a will?
Is the mortgage in her name or is she paying a loan in her mother's name? -
I am not sure there is much you can do. The only way the house can be dealt with is through the "probate" process in order to buy it "pre-foreclosure". At this point, your only option would be to pick-up the house at the foreclosure auction.Comment
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Title Issues
The house was left to her and her sister in a will. She is paying the mortgage under her mothers name. Right now there is very little equity in the house.Comment
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Nothing can be done. The will needs to be probated. HHM is correct, pick it up in foreclosure.
The sister is in a precarious situation.Comment
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HHM is right. Just because the house is moving to Foreclosure does not mean the sale is treated any differently than a normal property transfer.
In order for you to buy in the "pre Foreclosure" period, the Seller would have to be able to convey a clean title. Which in this case, your friend can't until the Estate has been thru Probate. And even then, friend's Sis would have sign off on the sale as well because she would become a co-owner.
On the Court House steps, at the Foreclosure Auction,........... That's a whole different story.
One thing you wanna check into is if your State has a Redemption period or not. Many States allow a period of time for the Owner of record to Redeem their property before the Foreclosure Auction Sale becomes final. Since the owner of record is deceased, Redeeming might not be an issue. Just a period of time you might have to wait to take Title to the property.
Also, buying a Foreclosure property isn't straightforward like getting Conventional financing to purchase a home.
Many States have specific rules about how much you must put down the day of the Sale. Type of funds for the down payment. How long you have to complete payment. As an example,........ 25% in Certified funds the day of the Sale with payment in full within 10 days of the Sale.
Be prepared to bring all taxes, HOA dues, etc, current. Make any necessary repairs to the property. When you buy a house at a Foreclosure Sale, all those expenses become your responsibility as well.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Depending on what state you live in, I would also contact a lawyer or title company and have a title search done to pick up any clouds on the title. They will not only give you a chain of title, but will pick up any recorded liens.
Keep in mind, if someone has a claim to the property and the lien is not recorded, it will not show up on the search.
Buying foreclosures is very tricky business and not for the weak at heart.Comment
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WHATEVER YOU DO, MAKE SURE YOU GET A CLEAR TITLE - AND A CLEAN ONE.......... take it from someone who experienced a TITLE MESS with my home during bankruptcy. Believe me, you don't want to go thru that.............Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.Comment
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Contact the foreclosing lender and if you have any line of credit available, attempt to purchase the loan at a discount, you have an attorney(perhaps same attorney lender was using) continue the foreclosure process, YOU foreclose on the home and take back the property cloud free.
Now this is assuming there is decent equity available. If theres not, forget it as you'll be out the money for the time it takes to foreclose plus sell.Comment
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Obtain death certificate first.Comment
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