Offer on a probate to Bank Of America

A short sale is when you purchase a home for less than what is owed.

If the owners don't want to sell, you may have to wait for the property to go through probate or foreclosure before you can submit your offer to the bank. (The property should be in a pre-foreclosure status right now - payments are late while a balance is owed. Foreclosure should happen at the time of auction when the bank tries to recover the amount owed by the owner by selling the house.)

Is there something left in the house that you'd like to have and that the kids haven't taken yet? You could try to purchase some items left in the house if the kids would agree to work with you. If you purposely overpay for items in the house then at least the kids would receive some money. And by overpay, I mean to pay a little more than something is worth. This way you might be able to get the house, and the kids can sell something they don't want in the first place.

BoA should not be talking to you about someone else's balance unless that someone has given you written permission to talk to the bank on their behalf.

You might want to talk to BoA and see what their take is on this situation. They probably see this situation quite a bit.

The dad died in January in Wis and the daughters live in Arkansas, and hadn't seen or talked to their dad over 20yrs. So they weren't found till the end of April.
They came up and took things back home and had a rummage. They had started the probate. They came back in July and again another rummage and a two ton dumpster for a all the junk. I sold one power chair and kept a small amount for that and sent the money, and sold the lawn mower and appliances and kept nothing, sent it to them. Nothing is left in the house. I did not make enough for even my time and chasing. But I knew their dad and they are having financial set backs in their families.
Probate was complete the first week in Sept, but by then they decided to do a "keys for cash." Not sure what they had to do. But BOA told them to get anything out they wanted before they have claims on the house. The girls, had the gas and electric shut off. I told them they should have just said to remove their names, because now the house has no heat or electric and winter is coming. I know BOA will have it, but till then, the atty said they are still responsible. So again, to be nice, I took care of it.
I do know what a short sale is, and tried to get the girls to do that. But they wanted money, and I said they weren't going to get it. There is some mold in the house, can be dealt with, but with them out of state, they can't afford all the repairs.
The girls and the atty would give me release so the Bank would talk to me, but we never even get that far. The daughters and the atty also have not heard anything. That is why the atty said, submit an offer. Even though they probably won't react, but then they have a house to take care of for the winter.
I have people asking about a group home, and the zoning is okay for that.
I have never dealt with this kind of situation before, so not sure if this would be wise. If I did submit an offer, and have an end buyer, can I even do a double close or assignment, not sure they would go for that. And I can't afford to buy it so have to do PML or assign, or bird dog it.
Thanks
Sandi

The one daughter has sent to BOA the domiciliary letter and the death certificate, and never heard back from BOA.
Their atty is really nice to work with and did not have to help me with it, but he is trying to help the girls through this. He is not charging them or myself for any help with working with me. We have talked extensively.
So my concern is should I do anything before it goes to auction. The atty said the girls can still keep it as the papers weren't finished yet. Could they have reinstated the loan of still did a lease option?
Tomorrow afternoon I will call the coaches to esp if I can get more info.
Thanks again for any advice.
Sandi

From my Foreclosure training (no experience with it) the girls can reinstate the loan by making all of the back payments and whatever fees would be included with that up until an hour or so before the auction.

Talking to the coaches sounds like a good idea.

I don't know if the option consideration fee would be enough to entice the girls to go along with the lease option. However again the payments should be current + whatever amounts the girls want may make it a rotten deal for you. Again, you may have to wait for the house to be foreclosed on so you can talk to the bank because the girls want to avoid the situation.

Good Luck.

the girls were going to reinstate the loan, but could not afford 5 months of back payments, and it was $1400 a month, plus repairs, and about $4000 in atty fees. And that is why even the atty couldn't believe they walked away from a lease option. I had a family!!
So now they will have nothing but a loss on all the money they spent coming up here.
Will talk to the atty again tomorrow afternoon.
Thanks for some input on this.
Sandi

I have talked to the coaches a couple of times, and now they are so busy, I can't get through. So here's the question.
The atty on this place suggest I put in an offer. And have some contingencies so that the daughters won't be stuck paying any difference. Owed $122, and repair estimates around $25k though I was given less than that, I am planning on extra just in case.
I have a buyer, so far, they are 90% sure. For around $150. If I submit an offer to BOA on a short sale, first will I have any time after it does or if it gets accepted, to come up with financing, if the end buyer doesn't come through.
Second, can I assign on a short sale, I don't think I can. The atty said I should try to avoid a double close would look better if I don't.
If I offer 50k below what is owed, because of repairs, can I advertise this place while I wait for an answer from BOA. But not knowing for sure if I will get it, how do I advertise it.
I have never dealt with this kind of situation, and then it is BOA!
Just a note...I winterized the place, and a friend of mine went back with me today to empty the pressure tank. Which is in the rec room. Whoever installed the plumbing put a faucet to empty it with a weird faucet and we went back home to get a hose to drain it to the drain tile, as it was not near the drain. Meantime, BOA sends someone out to winterize and the idiots just opened it up and ran it unto the carpet and floor. Pat, my friend showed up and politely asked what the...were they doing. And he put on a hose.
Atty said he didn't know why they were out there already, and the people told Pat we have 45 days before they need the keys. I'm not understanding this.
So any help on the contingency to exit just in case, can I put based on inspection, or a partner on a short sale?
Sandi

I don't think the bank will let you assign the deal because they don't 'know' and have not 'seen' the end buyer and the end buyer's financials. From what I read in the forums, the only way to flip an REO quick is to do a double closing. Don't know if that applies to short sales though. Your contract should have a clause that allows you to market the property when your contract is accepted. You can put an inspection contingency in your contract, not sure what you mean by partner.
If BOA is sending out idiots like that to take care of their REOs and they're not even wanting to talk to someone who wants to make a deal, thats probably why they're having so much trouble as a bank.
Hope everything works out.

RENinja

first off i'm sure your coaches will probably know better than i, but my take is if the probate atty. says make an offer and you have a family to do a lease option..... make an offer, they won't shoot you haha.
you probably need also to have a come to jesus meeting with the daughters and as politely as you can crack them in the brains to let them know all of nothing is still nothing, they're not going to get any money period,they can't catch up the loan and why would they? you have someone that can relieve their problems and,oh yea, winter is coming and mold doesn't stop growing w/o removal. if they still won't listen, let them learn the hard way and you work on a better deal.
keep moving forward, rob

Two months ago they told the bank that they were not taking it over. These are very nice girls, and they really got ripped off. After their dad passed away, druggies moved in and lived their with their parties and even called to have the furnace repaired in Feb, and billed it to their dad.
And ran up an $800 electric and gas bill, which the one daughter paid, and she shouldn't have. The people who took over the place were kicked out by me and one of the daughters. But not till after they stole most of their dads stuff. The guy had 12 felons on him, and the daughters didn't know that. So when I told them we got him out. I called the sheriff but we can't prove what belonged to their dad. But the sheriff was looking for this guy.
So they were doing what they thought they could do and retrieve some loss. They turned down everything I offered until I had Joan talk to them, and reluctantly they withdrew from the place.
Tonight I am trying to find the right contract for BOA and that is good in Wisconsin.
The family for lease option moved on.
Just not sure about the procedure with this mess, the atty offered to help me with the contingencies before I submit it.
But I am worried about an exit if the end buyer doesn't come through, but they are really impressed with the place. And the investor who contacted me helps people with loans, so she knows what they can afford, and they own other group homes. That is there plan for this one.
Thanks for the input.
Sandi

hope everything works out for all concerned, and it's great that the atty. will help. i'd still talk to the coaches before submitting any offers.
keep moving forward, rob

I called a few times and they were very helpful, and spoke with Randy twice. I will try them again in the morning before I write everything up.
Thanks and good luck to you
Sandi

For some reason the atty said I shouldn't try a double close with them, but not sure why. I am quite sure the financing is already okay with the buyers, as the investor who called me does financing not with banks and they own other properties.
My worry is an exit in case, and I can put inspection, but not sure if I can with this situation, or with partners approval.
Need to have this done by the weekend, so trying to make sure I don't miss anything.
Thanks for the input, and this has been a good learning deal for me. I want to special in probates eventually, and this one fell into my lap.
Will let you know what happens.
Sandi

you can't have an inspection clause in your contract. You should have the right to know everything about this property before you buy it. As for partners approval, I don't see why they would have a problem with that either. A famous investor said when he started out buying real estate, he always bought subject to his partner's approval. He never stated who his business partner was. It was his cat.
I have read in other topics that BOA is giving investors a hard time with all these restrictions. Ask your attorney to clearly state why you can't double close with BOA, it might be a misunderstanding of double closings. I would be curious to know why too. Please let me know if the attorney answers that question.
Good luck!

RENinja

I think BOA will not do a double close on a short sale. And I network with a girl who does titles and investing, and hope to talk to her on Monday. The other investor who has the buyer lined up, said I should state to BOA that the home needs major changes as it is going to be used as a group home. IS that a good idea???
So not sure how to word this. I have a WINGS meeting on Thursday where about 20 women meet from our REI group and we network and help each other.
But the house is not in the banks name yet, so I don't know why I can't do a double close. But yet they sent someone for the winterizing.
Will have to get better clarification on that.
This has been a headache, but a good one as it is teaching me about probates and BOA!
But I will be in touch with the atty again, to find out why the double close is not a good idea.
Thanks for input
Sandi

What do they expect us to do, LOL. Buy the home at above FMV and live in it or rent it out for thirty years? Tell BOA good luck with that, cause we're in a buyers market.
I suppose, if you're going to use the fact that it needs major changes as a negotiating point. For example, if they want 100,000, but homes are going for 80,000, and its going to take 30,000 to make the changes, by all means tell them your best offer is 30k.
I don't see why the bank would care what happens to the home after they sell it, because they wouldn't be involved in it anymore.
I think now that the owners are behind on payments, the bank has the right to step in and have a say in how the deal is going to turn out so the bank can get back their money. Not sure myself.
Hope that helps.

RENinja

it's not the boa's business what you do after the first close, of course you can do a double close.
keep moving forward, rob

I was told I can do a double close on it. And the owner passed away in January,the daughters weren't located until mid April. And they live several states away.
So they ended up with a mess. Their dad let someone move in to help him as he was disabled, and the guy lived in the house till after the girls came up to the house. I then told the girls who this guy was, a convicted felon, and drug dealer. It took till July 1st when I threatened to go to the house and remove him, and the daughter called him also and told him to get out. I showed up on July 1st and he was gone. I called the sheriff who was currently looking for him again.
Anyhow, the guy stole the dishes, tools, and lots of personal stuff of their dads, but they couldn't prove what was their dads.
So after starting to reinstate the paper work, the girls walked away because of the work needed and late payments.
This guy also ran up an $800 electric bill that the girls paid. He also had the furnace fixed in Feb and the bill was sent to the dad. No one knew he had passed away. Except the hospital who notified the mans step daughter, who basically didn't care. She did try to get her name on the house but was denied as she wasn't a daughter.
It was a mess to undo, and I worked hard for these girls to help them. I did a lot of stuff for them at the house and clean up, and was there everyday over the summer even mowing the lawn.
So now I put in the offer for a short sale, hoping to make enough on it to even send the girls a little something as a gift from me. I knew their dad.
So thanks for the input, I really do appreciate the help, was nervous to do this, but with all the support on here and the coaches, I got it done. Now I wait for the response.
Have a great day everyone. Will let you know what happens.
Sandi