Posted by Kristine-CA on June 04, 2009 at 11:03:21:
In Reply to: Deceased lender posted by ryan bui on June 03, 2009 at 21:22:06:
Ryan: There is much on this thread regarding extinguishing or
reducing the amount of the 1st deed of trust. I'd like to take a different
angle.Can you use the the complications of the DOT ownership and
necessary time-frame to solve the lender issue, and the fact that the
note now has 7 years of arrears and fees to get a good deal? In other
words, buy the property subject-to the 1st, but make sure your
purchase price reflects how messed up that note is. Your seller has
virtually no chance of selling with marketable title anytime soon, IMO.
You may be the only game in town. Offer a down and to wrap the the
rest of the payment around the first. You could offer a balloon
payment (3-5 years, etc.), giving you enough time to work the
deceased lender issue. There are many angles for that.Make sure you have a deed or signed agreement before you even think
of contacting anyone having to do with that note. Did you check the
courts to see if the deceased lender had any probate proceeding?Your seller knows he has a problem. 7 years of not making payments
and not really trying to make payments is just waiting for the axe to
fall. I think you should be able to make a good deal here. Kristine