Case Study W Mendocino Ave Stockton: Stop Foreclosure, Open Probate, Sell the House and Move On
When the Bank Posts a Notice of Default on the front door it is a declaration that the house is headed to Auction. Despite all of the hyped strategies to stop or avoid a foreclosure, there is only one sure way to stop a foreclosure dead in its tracks… pay the mortgage up to date and pay the fines and fees current. It really is that simple.
We all have to agree that despite the desire to pay the mortgage if you don’t have the money, the mortgage is not going to get paid. Miss at least 3 payments and a Notice of Default is posted, by then a date has been set to sell the house at auction and it is published in the local newspaper. That is the protocol.
The House at W Mendocino Ave, Stockton CA was no different. The Notice of Default went up, panic set in and the Sisters that inherited the house wanted to sell it before they were even on title. It happens a lot and even though real estate is not that complicated, it does have rules and if you are not on title you have no legal right to sell. There is also another rule when dealing with title… the more people that are on title, the more complicated the title issues become, especially those people have died.
Title Company’s never act on their own. They look to get instructions from a third party, usually the Probate court to establish the rightful succession of of ownership.
So the thought of just adding another person to the title of a house could have serious consequences when it finally comes time to selling that Stockton house because anyone that is also on title must agree. No matter what the situation, it takes less time to take care of title issues before they reach epic proportions. Correcting them after the fact can be a long and drawn out process. Sometimes it’s simple.
Here is their Story:
- 2 Sisters (one local)
- Mom and Dad pass away
- There is no will and the house remains in Moms name after her passing
- Probate has NOT started
- The house has a Mortgage in default
Mom and Dad Pass away within a few years of each other and as is typical in a lot of families, there is no will and there is no one appointed as executor to deal with the estate. The siblings attend the funeral and talk about how to deal with mom and dads house and the sibling living in closest proximity to the family house is left in charge until something can be decided. In most cases like this, there isn’t a lot of cash in the estate and the children are left unprepared to deal with the house and often don’t even know that Probate is required to take legal Title. As such, there is no discussion of probate and the surviving heirs divvy up Mom and Dads belongings.
In this case its decided that the sibling living closest to the house moves in, takes care of the mortgage, property taxes, insurance and other maintenance issues of the house and everyone is happy, after all Mom and Dad would have wanted it that way”.
A few years go buy and all of a sudden there is a crisis caused by a job loss and the payments are not consistently being made and over the course of a year the sibling living in the house is three months behind on mortgage payments and a notice of default is posted. Panic sets in. To make matters worse, the property taxes have not been paid in three years and there is no money to do that either.
The other sister has no clue until she receives a phone call telling her of the impending Foreclosure crisis. Neither has the money to pull the house out of foreclosure and pay the back taxes due. To make matters worse the auction date is 5 days away.
With an auction of the house pending, the sisters started making phone calls and the reality of the situation set in. How in less than 5 days, can we sell a house that is NOT even in our name. How can we pay the mortgage to stop Foreclosure, open and close a Probate without any money and not lose everything Mom and Dad worked for?
Its a daunting task and yet it can be done. I have helped many families like this and for almost 10 years and it requires a lot of commitment and and a lot of risk.
Sure the sisters could have just let the house and whatever equity that was there go, or they could find someone to help them out of the situation. They called me. My name is Peter Westbrook and I’m the owner of Westbrook REI and We Buy Houses in Stockton, Sacramento, Manteca and Modesto.
FIVE DAY CHALLENGE:
- Purchase the house from the Sisters that don’t have title to the property
- Getting Bank Authorization to talk to me
- Sending the right paperwork to the bank, remember the loan is in Moms name and she is not there to authorize anyone to speak about the loan. Death Certificates and proper Authorization forms.
- Getting the exact payoff information including late fees, attorney fees and any other fees in including impound account shortages
- Wiring the exact amount the bank requires to the right account on time
- Attaining Confirmation of receipt
- Confirmation that the Property is off the Auction list at the Bank and the County
- Handle all paperwork associated with all aspects of the House, the Foreclosure, the bank, Insurance Company, the County for Taxes and of course updating the Sisters
- Make the ongoing monthly Mortgage Payments
- Pay for Homeowners insurance
- Clean up and pay for any code violations
- Hiring and paying for a Probate Attorney
- Addressing all of the issues that are outlined on the Preliminary Title Report including liens to prepare for Probate Judgement (in California this can take up to a year)
- Advancing Money to the Sisters for the Equity in the house
- Enter into an agreement with the Sisters to Purchase their interest in the House and buy their equity out
- Wire necessary money to Mortgage Holder to Payoff the Foreclosure in less than 3 days
- Hire and pay for a Probate attorney and necessary filings
- Continue to make the Mortgage and Insurance payments
- Create a timeline and advance money to the sister occupying the property so that she could move out
- Advance money to the sisters prior to the closing
It took over 18 months from the time we saved the house from Foreclosure until the Probate was approved by the court. In that time we maintained all monthly mortgage payments, Insurance payments and property taxes due on the property.
Once we took official title ownership of the property we invested heavily into the clean up, repair and renovation of the house and converted the once 3 Bedroom 1 bath home into a 3 Bedroom 2 Bath home.
Some Real Estate Problems Are Resolved with the Sale of the House
At “Westbrook REI” and “We Buy Houses that are Ugly Stockton”, we are the best at what we do because we work at it every day. We understand that a commitment to customer and a commitment to our business only happens with hard work. We have years of experience and a plan that we follow. We are a real company with real people that are committed to helping you achieve your goals.
Again, we’re not real estate agents. We are actually Stockton house buyers and have our own cash… so we can make you an offer on the spot. Once we make you an offer, you can take that offer, shop it around if you want, talk it over with friends and family, and think about what you want. We won’t pressure you one bit.
If you want the best LOCAL We Buy Houses Company in Stockton, Sacramento, Manteca and Modesto then give our company a call today, we offer simply solutions to complex selling issues. Our house buying process is very easy with no hassle and we can close on YOUR time.
We Buy Houses Stockton CA, Get Your Offer at http://www.ibuyhousesstockton.com or call Peter Westbrook today at (209) 481-7780.