How to Handle Crusty Creditors

How to Handle Crusty Creditors
Hey, it's Rick. Again, let's talk about crusty creditors. Let's talk about the kind of claims that people have that are going to be nipping away at the equity in your estate or trust. One of the most common situations that you don't know about are liens, judgment liens, that show up on the property, but there's also tax leads. In addition to those, of course, that these mortgages reverse mortgages, being the most surprising ones to deal with. First of all, what you may not know is an after the last person to be on title dies in the mortgage industry, particularly the reverse mortgage industry, they call that, you'll feel their passion and sympathy right now, they call that a maturity event. So what happens is that I'm reverse mortgage now is do it becomes payable. It's also called professionally a noncurable breach. You cannot modify the loan. You can't extend the payments out. You can't stay there. They're going to basically call the loan. They're going to force it to do. And they're going to foreclose. How much time they have? Well, that'll depend if you're even able to get through. So one of the most difficult situations that we find happens is that somebody is in charge of a probate theater trust, the last person to own it, the senior, passes away. And then the lender, typically a bank or a large mortgage company will start writing the letters. How do they know? Who knows? But they know, and they start making the claims, pay this off, pay this off, pay this off. Then they record the notice of default. Unlike foreclosures of the standard bank loan, a forward mortgage, a reverse mortgage can be foreclosed on in as little as 45 days. Why is that the case? Because they're insured with federal money and federally insured loans have a much shorter timeline. So you'd be aware of that. They don't give you the entire hundred and 24 month period that you would typically see. Other kinds of creditors that are going to be a problem, that are very crusty, is the Department of Health Services also known as Medi-Cal. No, it's not always a lien on the property. They stopped doing that in 1993, when we were still fairly new to the business that shall long, we've been around since the 1980s. What they do is they force the issue. They sometimes will force a probative state to be open of one hasn't been, or if you have a trust and you're not taking care of business, one of their 600 plus attorneys that work for the department of justice within the state of California will force the issue, force the sale of the property.

If you want to keep your property, these crusty creditors are not your friends. So sometimes they'll work with you. Sometimes they will not. If you're expecting anybody from the state of California to work with you, Hmm, I'm not biased, but I'm a native of California. And I can say, they're probably not going to work with you. So you need to have a plan. If you're lucky, they'll give you a few extra weeks. Enough times you can get a loan from the suburban group, a CloseProbate™️mortgage. So what's necessary is that you have much information as possible to see how much is actually owed to pay off that debt. If it's less than half the value of the property, combined liens, and all that, you might be able to get a loan. If it's more than that, you're probably gonna have to figure out a way how to stretch this thing out and to not pay them.

So now what happens when you have a lien, this surprise lien, sometimes you can negotiate with the creditors, but they want you to have the money. They want to know they're going to get their money in short order, save the credit card. Claims those are claims, not necessarily liens on the property, although they can have judgment liens. Any of the creditors are going to be a whole lot easier to work with. If you have the money in hand, don't have the cash. Well, that's what we're all about. We're about making loans to the estates and trusts using the equity in the property. So if you have this in place, you're in a lot better position to negotiate with them and even reduce the amount of the debt and certainly buy more time and make those crusty creditors more easy to work with.