Why Probate is Better Than Foreclosure

If you are trying to make a profit in the business of foreclosures, you have probably found out how hard it is. It seems as if the market is flooded with people who are working to get a piece of that market. In many areas, this task is almost impossible, even for the most hard-working.

When you work in foreclosures, you often have to deal with sellers who are desperately unhappy. They do not really want to sell to you, and may view you as a vulture, preying upon their misery in a time when they are losing property they may still want.

The people in foreclosure are often losing their homes, the very roof over their heads. Can we blame them if they sometimes get irritated or downright nasty during the proceedings?

In probate, the situation is very different. The sellers in probate are usually eager to sell, and the house in question is probably not their primary residence. You are dealing with people who are motivated to sell and to be cooperative, not highly stressed people just trying to “get through” a bad time in their lives. It makes a huge difference in the way they will deal with you.

Many heirs are actually very eager to sell to you so they can quickly settle the estate. A friend of mine recently lost his mother and he inherited her house. During the next few weeks, he was required to travel back and forth, about 50 miles each way, to deal with the various legalities and hassles of property ownership.

My friend confided in me that if someone would just offer him a reasonable price for the house, he would probably take it. He even said that he would not dicker too much over the offer, because he would just want to complete the deal quickly and easily and liquidate the asset.

When someone you love dies, you not only inherit all of their property, but also all of their problems too. No one who is going through the grieving process for a loved one wants to take on a very large project at the same time. If you can offer these people a simple and fast solution of “What to do with Mother’s house,” they will take it, so probate is ideal.

Also, often after the estate goes through probate, several siblings or relatives will inherit jointly, which can cause all types of problems. Maybe the siblings live in different places or do not get along. Getting rid of property you own but do not live close to is sometimes difficult.

In most of these types of cases, none of the parties involved want the property, so they don’t want to buy each other out. Instead, they just want to split the money from the sale of the property. This fact is especially true if there are outstanding debts against the property, and also if they are going to have to pay a lot of inheritance tax on it, but can’t actually get at any cash. This is where you can step in to supply the heirs with a solution to what can be a difficult problem.

Another factor can come into play with this situation. Many senior citizens, 65 years or older, defer their property taxes until after their death in what is called a “senior deferral.” Once the senior citizen passes away, these taxes come due.

If the heirs to the estate inherit the property, they also inherit the past due taxes. Most people just want to get these taxes paid as quickly as possible, so that they can pay them and any other outstanding debts to the estate, and then see what is left over. They are eager to sell and resolve the matter, and pay off the hefty tax bill.

In conclusion, probate is better that foreclosure. The market is easier to work in because fewer people are buying in the probate market, and the sellers are more eager to sell to you. It’s much better to buy from people who are looking at you as a hero rather than a vulture swooping down to pick over their carcass and rob them of their home.


How To Potentially Help Save Your Home From Foreclosure

It is unfortunate that so many families out there are having to worry about not being able to pay their monthly mortgages and are at very high risk of having to deal with foreclosure.

Foreclosure is definitely something that none of us ever anticipate but there are times that it does happen, and just when you least expect it.

The thought of losing your home is very terrifying for many, so it is very important for all homeowners out there to realize just how important it is to make sure you take whatever steps you can to not end up homeless.

There are many different websites on the internet to get free information, and by talking to a professional, such as a Hud counselor, you can gather up all of the information necessary to try to stop foreclosure by being proactive.

Foreclosure can be quite devastating not only for your family life but your credit score. So it is very important that you try and do everything in your power to talk with your loan company or bank so that you can look at all your options.

If you avoid phone calls letters and just stop dealing with your lender, this ostrich attitude will only make things worse, and increase your chances of your home being foreclosed.

You might be surprised to know that many times if you just contact the mortgage company, they are happy to talk with you about your current situation and figure out what to do from given your new situation. No one expects that your whole life is going to stay exactly the same for the next 25 years, the duration of your mortgage, now do they.

Often the lending officers have the ability to work out some type of payment arrangement for you, or they could even allow for you to skip a couple more monthly payments, in hopes of you being able to get back on your feet again and get caught up on those monthly mortgage payments that have been putting so much stress on you and putting you on the brink of foreclosure.

Foreclosure does not mean that you are a horrible person, irresponsible or non trustworthy, or a failure. Sometimes money issues are just unavoidable.

Knowing that you do have other options will help take the stress out of an already stressful situation. Choose education, not avoidance. Nothing is going to ever get fixed if you just hide out, not wanting to talk to the bank because your pride has been dented.

They are not parents scolding a naughty child. Everyone just wants to protect their investment, and you want to have a roof over your head, so step up and take charge and allow them the opportunity to inform you of the different things that you could do to avoid foreclosure.

Do not continue letting your mortgage payment to go unpaid, and avoiding all of those phone calls. Do your research, come up with a payment plan you can suggest based on your own personal situation, and hopefully you should be able to work something out with them.

Get help from your local HUD Counselor, so the stress and strain of foreclosure won’t haunt you and your family. Gather all your relevant paperwork, and go online to find a HUD Counselor near you.