1748 9th St. Oakland 94607 Gets Confirmed

5/16/2013

1748 9th St. Oakland was a very big home is West Oakland. Built in 1905, this was a Victorian with plenty of original exterior and interior detail. The tax records indicated a duplex with 5 bed, 1 bath, 2652 sf, on a 3250 sf lot.
It was beautiful inside. It had big rooms and high ceilings. What a gorgeous property.
However, the property needed everything. Doors, windows, walls, etc. Basically, it was a cash purchase.
The first overbid fore it was set at $289,250. So the winning bid was $275,000. The investor who I knew that was interested in the property couldn't go that high.
Court confirmation took place on May 15, 2013 at 9 am at the Berkeley courthouse. There were no over bidders and the court confirmed the sale.
I'd love to see this home restored and at what the list price will be.

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Posponed - First Court Confirmation Probate Sale of 2013

2/4/2013

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Well, the first probate sales I wanted to see in January did not take place. Both sale confirmations were postponed! The buyer for 3925 Edenvale Place, Oakland CA backed out the night before! Wow. Again. 25843 Bel Aire Dr. in Hayward CA got postponed to March 12, 2013. Not sure why. This place has been scheduled and unscheduled for sale for over a year!

The listing agent for Edenvale told me about their postponement and asked me to send her an offer. A potential buyer told me about Bel Aire. "The listing agent told me they're probably not confirming the sale again."

Good thing I found out. It saved me a trip for nothing.

Court delays are yet more reasons for you to avoid probate. Sometimes this process can be worse, and longer than a short sale.

I have somebody for Edenvale Place but we're having to negotiate the purchase price.

First Court Confirmation Probate Sale

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What Happens To Our Deposit If We Can't Get The Loan?

1/8/2013

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Worried about a probate purchase.

I got a call from a buyer who was in a probate sale with court confirmation. She was very worried about the deposit.

Her: What happens if someone outbids us in court?
Me: You get your deposit back.

Her: What if we can't get the loan?
Me: Did you remove your contingencies?

Her: There were no contingencies.
Me: Well then your deposit is at risk.

Her: We own another house.
Me: OK.

Her: Well we might not qualify for the loan.
Me: That should have been determined by your lender when you were pre-approved.

Two things that should be pointed out here:

You can make an offer on a probate sale with court confirmation WITH contingencies. However, the contingencies must be removed before petitioning the court for confirmation. Removing the contingencies locks your deposit money in the transaction, like in a regular sale where you have removed your contingencies. It might be possible to back out if you've lost your job, or your getting divorced. Reasons like that might work.
The court confirmation means that you've gotten the house and it further obligates you to purchase the house. Getting out at this point is very difficult because now a court is involved and that means it's more complicated.

It's OK to bid on probate sales as long as your tolerance for risk is moderate to high. It should be OK if the situation is assessed properly and entered into with caution. Cash purchases are best as they don't require bank loan approvals.

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Advertising Issues Stop Confirmation

8/21/2012

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We were waiting for court confirmation. The judge said to our lawyer, "I'm having a little problem with the advertisement. There was no property address in it." I said to myself, “Uh, oh.”
I don't know the rules exactly, but the probate sale must be advertised three times (once a week) in the local newspapers. The ads inform the public of the sale and offer price to encourage bidding in court to gain the best price for the estate.
The judge said, "I don't see any other bidders in court. Could it be that the public was not aware of the sale because there was no address?”
Our lawyer explained and argued, but the judge kept coming back to, "Without the address what good is the ad?"
No confirmation.
OK, so we show up the following month. Guess what? No confirmation again. Lawyer failed to advertise the sale in the local newspaper. Advertising in the nearby newspapers was not good enough.
Aaugh! It’s a do-over…again!
These are the little things that make probate a more difficult sale.

Advertising Issues Stop Confirmation

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Asset Erosion Due to Probate

6/3/2012

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East Bay Probate Sales

A probate sale erodes the family assets in two ways:

Less buyers. Buyers usually don't understand the probate process so they get scared. They are afraid of losing their earnest money deposit if they back out. A buyer usually has to put 10% earnest money up front. (Some people are afraid to go to court.)
Legal fees. The lawyer handling the estate has to be paid. The courts have to be paid. The probate appraiser has to be paid too.

These two losses can potentially cost the estate 20% of the the asset.

Something else:

Loss of time. A probate sale takes longer to sell than a regular sale, specially if the offer is financed as the buyer has to remove all contingencies before the seller can request a court date.
Break Up Loss. Sometimes the best thing to do is to keep the assets whole as they are worth more together than separately.

For these reasons, I'm suggesting to homeowners to prepare a will and a living trust if possible.

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May Probate Status Report for the East Bay CA

5/3/2011

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This month, in looking at the probates sales in the entire east bay, there were 47 active residential sales (detached homes, condos, etc.). For residential income, there were four (4) active properties on the market (duplex, triplex, etc.). These probates sales include court confirmation and no-court confirmation types.

An example of a probate residential income sale for investors: 685 33rd St. Oakland, CA for $199,000. This is classic 1910 Victorian fourplex. The property has two units downstairs and two units upstairs. All units are one bedroom, one bath. There is a 5th bonus, unfinished unit in the back. Total living space 2,205 sq. ft., and 3,600 sq. ft. Note: renovations and additions may be unwarranted. Fourplex will be delivered vacant. As-Is. Pest report available. No death on the property. Fourplex has tremendous potential and can generate positive cash flow.

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1748 9th St. Oakland 94607 Gets Confirmed

Posponed - First Court Confirmation Probate Sale of 2013

First Court Confirmation Probate Sale

What Happens To Our Deposit If We Can't Get The Loan?

Advertising Issues Stop Confirmation

Advertising Issues Stop Confirmation

Asset Erosion Due to Probate

May Probate Status Report for the East Bay CA

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