Month: March 2021

With homeownership often comes the necessity of estate planning or leaving legal instructions as to what happens to the house upon its owner’s death. The house may automatically pass to others through a living trust, quitclaim deed, or another legal document type. However, when there is no document, the estate, including any properties, enters into the probate process. Selling a house in probate isn’t something a lot of people are familiar with, so it can seem scary.

Probate is a thorough legal process in which the transfer of property from an individual’s estate to designated beneficiaries takes place under the supervision of the courts. This can be a long, drawn-out process, so don’t expect quick solutions or turnarounds. Courts are notoriously busy, and scheduling can be a nightmare, with court dates sometimes pushed back multiple times.

When the homeowner has no will or doesn’t designate a beneficiary for the house, it falls upon the executor or estate administrator to sell off the house. If the will hasn’t designated someone to serve as the decedent’s estate representative, the court appoints an executor or administrator who serves as the decedent’s estate representative. Often the appointee is the next of kin.

Once appointed, this person is responsible for selling the house and property. This is used in order to pay the deceased’s creditors or distribute proceeds to identified family members or other beneficiaries.

Selling a house in probate brings with it unique challenges that a traditional home sale doesn’t. Knowing what to expect when selling a house in probate can help the process move along more smoothly. Plus, it can help you keep your wits about you over the long run.

Your Role as Executor or Estate Administrator

Once assigned the role of executor or estate administrator, you become responsible for the home’s sale. You may want to consult an attorney specializing in estate law to ensure that you strictly follow all legal requirements. Because you don’t personally own the property, you also need to have court approval before a sale. It’s best to make sure you’ve received permission before signing over the deed.

Before you can sell the home, you need to schedule a home inspection and appraisal. This gives you an overview of what shape the house is in and what it’s worth in the market. Use this information to set your asking price and determine your next steps.

What If the House Needs Repairs?

Many homes that fall under the probate process need minor or sometimes major repairs. Funds for these repairs may not be available or may be tied up in the estate and not accessible by the executor or estate administrator.

If you need to repair the home before selling, you can hire a real estate agent experienced in selling houses under probate. These agents probably have connections with contractors willing to do repairs with the knowledge that all payments will be made upon the sale of the house.

Another option is to put the house on the market as a distressed property. Distressed property, meaning houses in some level of disrepair or damage, either physically or financially, is sometimes hard to sell. Many prospective buyers prefer to purchase a home in move-in condition or don’t want to wait until the owner’s legal issues, including tax liens or probate, have been resolved.

However, there are some companies like Meli Homes that specialize in purchasing a distressed property, as-is. Working with a company like this could save you time and money repairing the property.

Steps to Selling the House in Probate in Florida

However you choose to sell the house, you need to follow these steps to abide by Florida probate law: 

• File your intentions for selling the house with the court. Include the appraisal and the sales method chosen, such as open market sale or auction. You must wait for the court’s approval.
• List the house for sale, either independently or hire a real estate agent specialized in probate sales, or contact a distressed property buyer.
• Once a buyer comes forward, inform them that court confirmation is required before the sale can be completed.
• Petition the designated probate court for an Order Authorizing the Sale of Real Property, including your signature along with sale and property descriptions. Also, include a copy of the Sales Contract with the buyer.
• Obtain consent from all beneficiaries of the estate or proof that notice has been provided to all beneficiaries with no objections. A hearing can also be set.
• Court will review all documentation, and if sufficient, will issue an order approving the sale of the property to the buyer.

Types of Buyers

Potential buyers may not be willing to wait and jump through hoops necessary to purchase a house in probate. It’s often a long process, and many private buyers might worry about going through it only to not receive approval.

Instead of chasing private buyers, you can also consider selling the property to an investor, or cash home buyer, experienced in purchasing distressed properties. Even if the home is in fantastic shape, its probate status means most investors will consider it a distressed house.

By working with a cash home buyer like Meli Homes, you can close the sale quickly, usually within 30 days. You also receive full payment upfront with Meli and won’t need to cover closing fees. Knowledgeable in the probate process, you can trust Meli to follow all the legal requirements involved. We provide you with the peace of mind that you have fulfilled your role fully.

Contact Meli to Find Out More

If you’ve been appointed the executor or administrator of an estate in Central Florida, and need to sell under probate, reach out to Meli! After a few quick questions, you could receive an offer and be on your way to a quick sale.

Call us at (407) 338-4183 to start the process today. Until you sign the contract, you have no obligation to continue the sale and can back out at any point, making your call to us entirely risk-free.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

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For your ease, we have provided a transcript of the Distressed Home Q&A Recording.

Hey, it’s Evan with Simple Sale Central Florida; we are back for our March Distressed Home Q&A. We come on once a month to answer any questions that come up throughout the month that we get from clients.

Simple Sale buys, sells, and lists distressed properties throughout Central Florida from Tampa Bay to Orlando to the Space Coast. We specialize in working with properties that have legal issues, excessive repairs, problems of any sort with a property. If someone needs to sell quickly, that’s what we specialize in.

Let’s go ahead and get right into the questions we have:

1. How can I sell a house that needs repairs?

Typically a property that needs a lot of repairs done will have to be a cash sale. Otherwise, you’ll have to make the necessary repairs. Then you can sell that property on the MLS, on the open market with an agent. If you’re unable to make those repairs, your best bet is to sell the property to a cash buyer who can sell the property as-is.

Read More: How to Sell a House that Needs Repairs

2. Is it possible to sell a house in probate?

It is possible. It’s possible to go under contract on a house that’s in probate, but the probate will have to be resolved before the property is closed on. The personal representative or the executor of the estate can sell property, put it under contract to sell. Once the court gives permission to sell that property, then the buyer can close on it and the seller can sell it.

Typically that will take a document from the courts, the title company will require the document from the courts to be able to sell that property. But it is very possible to sell a house that is in probate, as soon as the court allows you to.

3. Can I sell my house to avoid foreclosure?

Yes, you definitely can sell your property to avoid foreclosure. That’s one of the ways that you can avoid it. Obviously, you can try to renegotiate your mortgage, lower your payments, things of that nature.

You also can sell it in order to avoid the foreclosure and pay off the mortgage that is owed. That will allow you to get out of the foreclosure process which will end up saving your credit. And, more than likely, giving you more financial peace of mind if you’re behind on your mortgage payments.

Read More: Can You Sell Your House Before Foreclosure?

4. Can I sell my house as-is, fast?

You can very much sell your property as-is quickly. Typically if you are selling it as-is, you’re going to be selling it to a cash buyer. That cash buyer, in most situations, will be able to close quickly on your property in the current condition. Once you go under contract on it they should be able to close on it quickly, 30 days or less.

There really shouldn’t be a reason for it to take more than 30 days. I think most of the closings that Simple Sale does is within 3-4 weeks. There’s really no reason for it to take longer than that.

5. Is there anything particularly difficult about selling your house as-is?

I think the only difficulty is really finding someone who will actually buy the property as-is and isn’t just making you an offer and holding you up in a contract. It’s just going to be finding the right home buyer that’s reputable and accountable, and they’re able to close on your property quickly.

Selling it as-is, assuming there is something wrong with it, to someone who is trying to obtain financing from a bank is going to be very difficult. Typically a bank is not going to finance a property if it needs a new roof, new AC. If there’s excessive repairs needed on the inside, a bank isn’t going to approve it. It’s more than likely going to require a cash buyer to be able to buy that property.

The difficulty is it reduces the number of buyers because it’s limited to cash buyers if there’s something wrong with the property.

Read More: Pros and Cons of Selling Your Distressed House As-Is

6. How can I get rid of a distressed property?

The best way to go about it is to find a company that is reputable, has great reviews online and a recognizable brand. They will be able to lead you in the right direction based on what’s going on with your property. Whether it’s something legal or an excessive repair issue, then it’s going to be your best bet to work with a cash buyer.

Someone who’s reputable that has worked with many people in a similar situation and is very experienced. They’ll be able to educate you on what the process is going to look like to give you peace of mind. Really, the best way is to work with a reputable home buyer that will buy your property for cash.

Read More: 8 Tips to Sell Your Distressed Property in Florida

7. Is it safe to work with a cash home buyer?

Yes, it’s definitely safe to work with a cash home buyer! As I already said earlier, the main recommendation is that you work with a company with reviews online. You should be able to find reputable reviews over a period of time that shows that they’ve been in business and they’ve worked with multiple people and they’ve had good interactions with their clients.

That’s going to be the best way for you to protect yourself. There are some cash buyers that will do things to try to get more money. They will try to give you less money for your property for whatever reason. That may be, a day or two before closing, asking for what they call credits, a reduction in the purchase price by a few thousand dollars, or something of that nature.

Typically with these companies, if they have a brand name at all, it will be relatively easy to see online that they don’t have great reviews and they don’t have good experiences with their clients. Typically their reviews will prove that.

Read More: What is a Cash Home Buyer?

8. Is there anything specific to selling a home as-is in Florida compared to other states?

I don’t necessarily think so. I think it’s all pretty similar. Maybe some of the documentation is different, maybe a little bit of the title processing is different, but for the most part everything is going to be very similar. Obviously different areas have different styles of homes, different types of homes built with different materials. For the most part from just a seller’s standpoint, what they’re going to have to deal with will be pretty similar to most anywhere else.

We’ve worked on deals outside the state of Florida that haven’t been particularly different than anywhere else, so I wouldn’t say that there’s anything specific to selling a home as-is compared to anywhere else really.

9. What types of situations do you specialize in?

We specialize in working with properties with legal issues. A lot of times it’s going to be some form of probate or lien issue. Maybe a property that has an heir that has passed away and there’s multiple heirs. Then we work with those heirs, settle out any differences that they may have. We then negotiate with them to make sure everyone’s happy with the situation and ready to move forward.

We are also very experienced working in settling code violation liens. We actually do buy those properties with the liens on them and renegotiate them. If you have code violation liens or things of that nature, that’s not that’s not an issue. Also if someone’s looking to sell property with excessive repairs, that’s definitely something that we are very used to dealing with. Properties that have holes in roofs, things of that nature. It really doesn’t bother us.

Liens, judgments, legal issues, probates, anything out of the ordinary… We’ve worked on it before so we are very used to working with that. It’s really not an issue at all. Also foreclosure, we work with a few foreclosures though it’s not a big part of what we do. On occasion someone is selling in a foreclosure situation and we will work with them as well.

10. I need to sell my house fast in Winter Park, can you help me?

Yes, of course. We buy properties in Winter Park, Orlando, Altamonte Springs, Maitland, anywhere throughout that area, Casselberry, Orange County as a whole we focus on. We can buy properties quickly in any of those locations, and we can definitely help you out.

Wrapping Up

Any other questions? In the comments I don’t see any questions. So we’ll go ahead and close it out.

You can always give us a call, 407-338-4183 or visit our website, simplesalecentralflorida.com. At Simple Sale we specialize in buying distressed properties throughout Central Florida. Tampa Bay, Orlando area to the Space Coast. Our mission is to bring transparency and accountability to distressed home sales and we try to do that through every transaction that we work with. Feel free to give us a call and we would love to try to help you out!

That is it for this month. We will be back next month to answer some more questions. Please feel free to reach out to us, go to the website and fill out the form, or give us a call directly and we can talk with you immediately. Thanks! Bye.

Many of us find ourselves in a situation where we need to sell a distressed property as fast as possible, whether it’s to release some funds or take some unwanted responsibility off our plates. Buying and selling a property can be a stressful experience, which is why there are companies that buy distressed properties. Our guide to things you should consider when you’re selling your distressed property will help you achieve your sale.

What is Considered a Distressed Property?

When you hear the term “distressed property,” you may think it refers to the physical condition of a building. While physically neglected homes are one type of distressed property, the term also refers to properties caught up in legal disputes or whose owners have financial difficulties. Some of the principal reasons a property might become distressed are:

• Properties can be left in disrepair due to natural disasters or neglected because of the owner’s economic problems. If the homeowner cannot pay for repairs, they may need to sell the property quickly.
• The homeowner has died, and the property is stuck in probate.
• Due to financial instability, the homeowner cannot pay their mortgage and may wish to sell quickly to avoid foreclosure.
• If an owner has been fined because the property is not to code, they may need to sell it as a distressed property.
• If a property market is slow and a homeowner needs to move quickly, they may decide to sell their house as a distressed property.

The Benefits of Selling to Companies That Buy Distressed Properties

Buying and selling homes is an emotional experience. It can get even more fraught when people are forced to sell under unexpected circumstances. Some homeowners find the idea of selling their house as a distressed property sad or shameful, but that’s not true. There are considerable benefits to selling a property in this way, for instance:

• Speed and simplicity: Buying and selling property is often one of the most stressful experiences of people’s lives, and sometimes that experience takes months or even years. Selling your distressed property as-is to companies that buy distressed properties is a fast, straightforward alternative.
• No need to renovate: If you are the owner of a property that’s in poor condition, for example, if you’ve inherited a relative’s home, you may not have the resources to renovate. Selling it as a distressed property allows you to avoid this mammoth task. Plus, you may walk away with cash in your pocket.
• Avoid foreclosure: If you find yourself unable to make your mortgage payments, the bank may repossess your home. Selling your distressed property quickly can ensure you avoid this. This may also give you money to pay off some debts and protect your credit rating.

Tips for Getting the Best Sale

Every homeowner that’s selling their property wants to sell for a good price to honest buyers. Depending on the housing market, that can be a challenging task. Following these simple tips can help you get the sale you want.

• Make some improvements: One of the best ways to achieve a higher offer on your home is to do some renovation. Depending on your time and budget, you may fix large structural issues or merely give your house a face-lift with a fresh coat of paint. Balance how much value the work will add to your property with how much money and time it will take.
• Present it well: You’re much more likely to attract distressed property buyers if your home is clean, uncluttered, and inviting. If the outside or inside of your property is messy and unkempt, potential buyers will be left with a poor impression. Staging your home well is vital.
• Set a fair asking price: Do your research and don’t ask for more than the property is worth.
• Honesty is the best policy: Be upfront with your buyers about any issues with the house, whether they are structural, financial, or legal. This prevents buyers from dropping out at the last minute or taking legal action against you in the future.
• Keep thorough written records: Remember verbal agreements aren’t binding and are challenging to prove in court.

For more tips on preparing your home for a sale, read Our top 5 strategies to help you sell your distressed house.

How to Sell a Distressed Property

When it comes to selling a distressed property, you have three choices: sell with a real estate agent, list it yourself, or work with a cash home buyer.

Real estate agents are most people’s first port of call when selling a home, and that’s understandable as it comes with a lot of benefits. Realtors have lots of experience and come with many contacts of potential buyers. They do most of the work for you, from advertising to organizing open houses. However, the housing market is fickle, and it can take months to sell in this way. Additionally, you will have to pay your agent a commission fee.

Selling your property yourself avoids real estate agent fees, and many homeowners like knowing that they are in charge of how, when, and to whom they sell. However, this method involves a tremendous amount of work. To do it successfully, you will need a lot of time and knowledge about your state’s real estate laws.

If you want to avoid the stress of listing your own property, avoid commission fees, and achieve a fast sale, selling to a cash home buyer could be the right choice for you. Companies that buy distressed properties, such as Meli, can often complete the sale, buying in cash, within just 30 days. They will buy your property as-is, so there’s no need to try and convince them with house selling tactics. It’s a simple and effective method.

Companies That Buy Distressed Properties

If you decide that selling your property in Central Florida as-is is the best solution for you, go to Meli. Just as the name suggests, the process is surprisingly simple. You could close on your house within 30 days of initial contact. We offer a fair price, handle all the fees, and can be flexible with your moving-out date.

For more information about selling a distressed property, contact Meli Homes today at (407) 338-4183.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

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When you hear the term “distressed property”, it might carry a negative connotation. However, there are several types of distressed properties with various factors, some invisible and some visible, that can explain the property’s current state and lack of upkeep. In many cases, the reason for your property’s distressed condition is something others are likely experiencing too.

Distressed property or those at risk of becoming one are common, and owning one doesn’t mean you have to be prepared to lose face. In fact, these are highly sought-after properties that can offer a unique opportunity to interested buyers and can be fixed or flipped to be transformed into desirable homes and real estate.

Here’s why there’s no shame in owning a distressed property and what you can do with yours.

What is a Distressed Property?

It’s can be useful to understand how different types of distressed properties are defined and how. This helps eliminate or lessen any feelings of discomfort or embarrassment around owning such property.

The term distressed property encompasses multiple definitions. The most common use for the term is to describe a property that lacks upkeep or one in which the owners are under financial stress, having missed property tax or mortgage payments. For a bank or lender, a distressed property is generally a home facing foreclosure or one with a tax lien. Health inspectors will identify a house with code issues as distressed.

No matter what, it’s not uncommon in Central Florida and across the country for individuals to possess a distressed property and need to sell their property quickly.

What Causes Distressed Properties?

Several events can cause a property to become distressed. When a property owner falls on hard financial times, it can become increasingly challenging to make mortgage payments, pay for repairs, or afford general upkeep. Losing a job, going through a divorce, and enduring a host of other financial and legal hardships can contribute to a property falling into disrepair or becoming distressed.

After the property becomes distressed, a homeowner may face legal consequences if they cannot pay their lenders quickly, including:

• Facing foreclosure
• Bankruptcy
• Liens and judgements
• Owed property taxes
• Code violations
• Home in probate

Regardless, it’s common for people facing this to keep their money troubles to themselves or to feel humiliated. Some homeowners may try to fight foreclosure or try to put what money they have available into their distressed property. They’re often ashamed to foreclose or fearful about the consequences of foreclosing. 

There is no indignity in cutting your financial losses and walking away from your distressed property. There are options outside of foreclosure available to owners of distressed properties, including modifications, selling as-is, and short sales. 

What are the Types of Distressed Properties and How are They Sold?

If you own a distressed property, several selling options are available to you that will enable you to pay off your debt and escape foreclosure. There are three main types of distressed property sales, each of which requires a unique selling process.

• Short sale: When a homeowner falls behind on their mortgage payments, they may want to consider a short sale. A short sale is when a house sells for less than the amount owed on the mortgage and typically happens during the pre-foreclosure stage. Once the lender approves the short sale, the homeowner will receive a Notice of Default from the lender. If they can’t pay the total owed mortgage within a given timeframe (usually three months), they may be able to make an agreement with the lender. If no funds are available, a short sale may be the best course of action to avoid foreclosure.
• Real estate owned: When a homeowner fails to make mortgage payments, the lender will issue a Notice of Sale, which commences the foreclosure process. Once the foreclosure is final, the lender becomes the owner and the distressed property becomes Real Estate Owned or REO.
• Abandoned or vacant property: If an owner has abandoned or left a property vacant, the property is then considered a distressed property.

What You Can Do With Your Distressed Property

If you are the owner of a distressed property or you’re unable to pay the mortgage, pay for repairs, or facing some other type of legal or financial issues, you may want to sell your property to avoid legal problems.

You can get rid of your distressed property with relative ease in one of three ways.

• Work with a real estate agent: You can hire a real estate agent to help you sell your home. The real estate agent will do all the work necessary to sell your home. This may allow you to sell it for a higher price than you could on your own. However, it could take awhile to find a buyer willing to buy it at the right price, and many real estate agents take a commission.
• Sell on your own: Instead of hiring a realtor, you can go solo and sell the property yourself. If you’re willing to do the work yourself, it might be tempting to avoid paying your real estate agent’s commission. However, “for sale by owner” can be a tedious and taxing process if you don’t know all the selling techniques. 
• Sell to a cash buyer: Selling to a cash buyer is a fantastic option for selling distressed property. At Meli Homes, you’ll close in less than 30 days, and we can purchase your home with cash upfront. We’ll also cover all closing fees, so you get as much from the sale as possible.

No matter which selling route you choose, it’s important to remember that plenty of fellow homeowners are in the same boat as you, with various types of distressed properties. It’s okay to cut ties with your distressed property in the way that works best for you, financially or emotionally.

Learn More Today

If you own a distressed home or property within Central Florida and you’re ready to sell, Meli Homes can help. Send us a message through our contact form today! We’ll get back to you within 24 hours to set up a plan for your home.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

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