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Trying to buy a home from an estate - Need advice

Have found a property with "potential".  The deed is still listed under the deceased owner's name.  Prior to her death, she took out a large loan and a line of credit.  The total debt is around 650k.  Even at the peak of real estate values, it was never worth that amount.  The property has now been vacant for two years without utilities.  We would like to purchase the property, but have been unable to do so.  A local law firm is acting as trustee.  They can't provide information due to privacy laws.  The bank that holds the mortgage cannot do anything until the property has gone through foreclosure.  Have tracked down the administrator of the estate, he would like to resolve this issue as well.  The property was due to be auctioned, but it was postponed; probably because of the large amount of debt associated with the estate.  My question is this: Can the administrator of the estate or the trustee sell the property in a short sale and avoid foreclosure/further delay?  A short sale would allow us inspect the premises prior to purchase for mould, leaks, etc. instead of purchasing a black mold nightmare or something equally unappealing.  Not sure if this house can go another six months without utilities and some TLC.  It would be a shame if it had to be demolished.  Btw, the property is in Georgia.
  • August 05 2013 - Atlanta
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Answers (1)

Sounds like you might have a night mare of a situation potentially. 

It is true that the lender/lien holder and the lawyer can not discuss the details with you.  Since you have tracked down the trustee/administrator though, they may be able to file for a short sale.  They will need to have access to any documentation required and if the estate has assets other than the house they might not be a candidate as the bank may require the full amount due.  

You can also talk to the trustee to see if they will allow an inspection prior to (At your expense) in the case of foreclosure. But keep in mind, most banks/foreclosures here in GA allow for a due diligence/inspection time frame. 

To best protect yourself, you might want to consider hiring a Realtor® or a real estate attorney and be prepared to walk away if it gets to be too much.  Don't over pay just cause you fell in love with an over priced house.  

Good luck. 
Cassandra
  • August 05 2013
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