 Subject to dead man (by Chris [TX]) Apr 19, 2018 6:56 AM
 Subject to dead man (by S i d [MO]) Apr 19, 2018 7:17 AM
Subject to dead man (by Busy [WI]) Apr 19, 2018 7:23 AM
Subject to dead man (by Barb [MO]) Apr 19, 2018 7:45 AM
Subject to dead man (by S i d [MO]) Apr 19, 2018 8:07 AM
Subject to dead man (by S i d [MO]) Apr 19, 2018 8:09 AM
Subject to dead man (by Ken [NY]) Apr 19, 2018 9:36 AM
Subject to dead man (by Landlord ofthe Flies [TX]) Apr 19, 2018 10:02 AM
Subject to dead man (by rick [NJ]) Apr 19, 2018 10:23 AM
Subject to dead man (by Sisco [MO]) Apr 19, 2018 10:29 AM
Subject to dead man (by Ken [NY]) Apr 19, 2018 4:23 PM
Subject to dead man (by Ed [PA]) Apr 19, 2018 5:17 PM
Subject to dead man (by Chris [TX]) Posted on: Apr 19, 2018 6:56 AM
Message:
So I'm in a little bit of a pickle and I'm not sure what path I should / can take. I purchased a property in a subject to deal. I have the deed and a power of attorney granting me "real property transactions, banking and other financial institution transactions, and lastly insurance and annuity transactions".
We closed and I started doing work on the property but then the lien holders died in a car crash. I took the power of attorney to the mortgage company and was told that the power of attorney has no power anymore because the person who signed it passed away. I need to have access to mortgage statements, escrow adjustments and ability to cancel his insurance policy / add myself as a additionally insured. What can I do in this situation? --138.128.xxx.xxx |
Subject to dead man (by S i d [MO]) Posted on: Apr 19, 2018 7:17 AM
Message:
Talk to an estate/probate attorney. From my limited understanding of how Power of Attorney works, the mortgage company is correct. POAs are only in effect until someone dies. After that, the estate executor and/or probate court takes over.
This could be an expensive fight with heirs and his estate. If you did the usual subject to thing and have no money in the deal, might be best just to walk away.
My guess is this is one (of many) problematic topics the gurus don't cover in their $5000 get-rich-quick seminars... --173.17.xx.xx |
Subject to dead man (by Busy [WI]) Posted on: Apr 19, 2018 7:23 AM
Message:
In the recent thread about slumlord housing, NE in Pa spoke about properties with issues like this. All this legalese goes 'swoosh' right over my head, but I just wanted to point you in the direction of that thread, in case you haven't read it.
hoping it works out, for you. I'll be watching to learn. --70.92.xxx.xxx |
Subject to dead man (by Barb [MO]) Posted on: Apr 19, 2018 7:45 AM
Message:
POA does indeed end when the person it is on passes away.
You will need a lawyer.
That said, did they sign over a deed subject to various things? Did you have a contract where they actually sold you the property?
I'd start by finding a lawyer to clear it up, but if the mortgage holder is in town, I'd go in there with my contract and deed and say, "I'm retaining a lawyer to clear this up, but I don't want the property to go into foreclosure while this clears up. Will you please work with me on this, so that the bank doesn't need to expend resources on it, when I have this documentation? I want to be sure the taxes were paid and the insurance is up to date so that we are both protected."
Sometimes they can work with you to protect their own interest. --131.151.xx.xx |
Subject to dead man (by S i d [MO]) Posted on: Apr 19, 2018 8:07 AM
Message:
For what it's worth, now that the bank knows the mortgage holder is deceased (and therefore not likely to pay!) this may be one of those times where a Due on Sale/Transfer clause gets put into effect. I agree with Barb you want to try to head this off if you can, but do not be surprised if they use the mortgage acceleration clause and call the entire balance owed due and payable immediately. They didn't make their loan to you, and most banks aren't into take over payments, and if he gave you a Deed transferring ownership my guess is now that they have zero collateral they will be (understandably) upset.
A judge might look at that mess and undo the whole thing as an illegal transfer. Dunno. This is why I don't do Subject To.
Start talking to your bank about how quickly you can refi and pay off the loan. Otherwise, the current lender may initiate foreclosure and snarl up the probate process.
Do you have any tenant/buyers in that house now? If so, time to let them know that this could get ugly. --173.17.xx.xx |
Subject to dead man (by S i d [MO]) Posted on: Apr 19, 2018 8:09 AM
Message:
I made a mistake. The bank does not have zero collateral. Their lien on the house would still stand in first position, but since you aren't personally liable for the mortgage payments, my guess is they will be quick to foreclose. --173.17.xx.xx |
Subject to dead man (by Ken [NY]) Posted on: Apr 19, 2018 9:36 AM
Message:
The deed is in your name so you own it,under the circumstances I would have my attorney contact the bank and see what can be done.Did you get a copy of a statement from the seller? if you did then you have an account number and payment amount.How did the bank find out they died? --72.231.xxx.xxx |
Subject to dead man (by Landlord ofthe Flies [TX]) Posted on: Apr 19, 2018 10:02 AM
Message:
Another option is to offer to buy the loan from the bank. They may go for the quick solution and then you'd be in first position lien which would have to be satisfied if the second position lien holder foreclosed on it, or if the estate sold the house to someone else. Just make sure insurance and taxes are current. --108.69.xxx.xxx |
Subject to dead man (by rick [NJ]) Posted on: Apr 19, 2018 10:23 AM
Message:
It's unlikely the lender holding the note is going to talk to you since you are not in privity of contract with the lender
Also as Sid has pointed out while you may hold the deed the property is still secured by the first lien holder they hold all the marbles --73.197.xxx.xx |
Subject to dead man (by Sisco [MO]) Posted on: Apr 19, 2018 10:29 AM
Message:
I advise that you communicate in writing by registered mail to the surviving spouse/heirs chances are that she will follow through on the deal her husband made.
If that doesn’t go well, be sure to watch for legal publication of probate, and notify the probate judge of your position.
Notify the lender....about your agreement with the deceased.
Yes, you will likely need an attorney, but you need to be sure that all parties concerned know about the deal that you made with the deceased, because they may be unaware. --72.172.xxx.xx |
Subject to dead man (by Ken [NY]) Posted on: Apr 19, 2018 4:23 PM
Message:
Landlord of the flies,the deed is already in his name so the estate cant sell the house to someone else,the dead guy already sold it.Assuming the deed is filed there is no concern there.Also if he bought the first position note and a second filed foreclosure he would only need to satisfy the second mortgage which is generally much smaller than the first because the second cant wipe out the first in foreclosure.He needs to buy an insurance policy,the deed is in your name so you need an insurance policy in your name because the policy in the former owners name does no good at this point because he doesn't have an insurable interest since he sold it,you may have a hard time canceling the old policy which sounds like it is being paid from escrow but if you cant get it cancelled it will just continue being paid and becomes a cost of doing business. --72.231.xxx.xxx |
Subject to dead man (by Ed [PA]) Posted on: Apr 19, 2018 5:17 PM
Message:
The POA is null and void at death. The executor of the estate now holds the power to talk to the bank. Approach the executor to help you straighten everything out. --72.95.xxx.xx |
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