Latest / The Jon Sanchez Show / What Happens To Your Home If It Goes To Probate?
Transcript
- Jon G. Sanchez: Tuesday to all of you. Welcome to the John Sancho Show on Newstock 780KOH. Hey, all three of us are back. What do you know about that? Mr. Millard, we missed your brother. I hope you had a good vacation. ⁓ Dwight Millard: I I did and thank you and I missed you guys as well. I wanted I wanted to call in but you know, just I was probab I was on vacation. I don't know. Yeah. Jon G. Sanchez: Yeah. You're on vacation. That's right. Well, wait a minute, Edge. Wait a minute. I remember a few times over the years you were sitting out, beautiful Lake Tahoe, on the shoreline, relaxing, and you called in and did the show from the shorelines of Lake Tahoe. So I know that. That's that's my point. I'm giving you kudos, man. Give Cory: You're on vacation. Dwight Millard: He did call in. Mm-hmm. Cory: That's because I'm dedicated, John. I can't get enough. B being on this show is a vacation to right. ⁓ Dwight Millard: Mm, yeah. Jon G. Sanchez: really look at it too. It's like one there there's there's two hours out of my day that I consider a vacation. My from four to five a.m. when I get to work out, and then from three to four every day when I get to spend time with you guys or by myself. And, you know, there's no phones, there's no emails, there's no nothing. And you just sit here and get to focus. And, you know, my favorite days of are with you two. And, you know, the just a bunch of guys sitting around rapping about all kinds of fun stuff. So I'm with you on that. Cory: Beautiful. Jon G. Sanchez: You got it. All right. That of course, Corey Edgeveg, related Dwight Miller Devon Q home loans. let me tell you what we have lined up. And we were joking before the show. And Dwight's like, hey, this looks like this show's all about Corey today. And I said, you know what, buddy? You're right. I wanted to, I wanted to I want to ease you back in after being on vacation a little bit. You for many of you, ⁓ your of course, is we have said a million times on this program, your home is your largest asset. But what actually happens if that home ends up in probate? Now you may be saying, well, wait a minute here. It's not Wednesday where you always cover estate planning topics. No, it's Tuesday. But we're gonna sneak this in a little bit. This is a kind of a warm-up till tomorrow, and here's why I'm saying that. Because Corey has a significant amount of experience in the probate courts on the from the real estate side. So questions like, who has the authority to sell your home if it goes to probate? How long does it take? Can your family move in? Who can use it? So on and so forth. So what we're gonna really answer for you today is what really happens, real life, not textbook, what really happens when a home, your home potentially, if you don't do any estate planning, goes through probate? How proper estate planning can help those families, those of you avoid those unnecessary delays and expenses? Corey, probably, you know, what I'm looking forward to more than anything, and I I always love your stories and Dwight's stories. is is really the the the war stories again, things that you have seen, that you have gone through. I mean, it's ⁓ it's mind blowing. It really is. And it it is Cory: Yeah. Yeah, and it isn't. We'll get into the I think everybody hears the word probate and it scares them and they think it's expensive and has no reason, but the court is there to protect the assets and protect the estate and make sure and you know, we've all three of us have talked about this over the years, especially off the air, that everybody can get along smoothly, but as soon as somebody passes away and there's money involved, it becomes a fight between the best of friends and the co ⁓ Jon G. Sanchez: It is. Dwight Millard: Yeah, I think. Jon G. Sanchez: Yes it does. Yes it does. Best of family, of friends, yeah. Yeah. Yep. Cory: Specifically family and and siblings. and the court is there to make sure that whoever's doing things is doing them correctly. so I don't ever look at it as a burden. It's it's doing its job and ⁓ sure. Yep. Yep. Jon G. Sanchez: Yeah. They're they're they're they're like the referee in a sense, right? Right. Do I do you have much experience with with clients over the years you know, going through probate and things? Dwight Millard: I I I do, John. I get it. Usually yeah, what they're usually trying to do is find out how, you know, can they qualify for, you know, once it goes through probate, can they but you know, I've got one going right now with a ⁓ you know, old friend of mine passed away and his son had to br move in. It was disaster and had to borrow his own money, use his own credit cards, the payment going and he's you know, he's going through probate and he's waiting to be able to, you know, but yet it's interesting because it's ⁓ Jon G. Sanchez: Okay. Dwight Millard: It's not it's not easy. And so Corey will be helpful in clarifying a lot of that. 'Cause I actually d encourage him to call Corey, but ⁓ I think we got it settled before we had. Jon G. Sanchez: Yeah. Well I I I I want you to you brought up a good point, Dwight, ⁓ and I want you to to to obviously give your expertise from the lender's perspective. I asked you this, I don't know, a few months ago, and I think it's a it's a good time obviously with this topic to bring it up again. that is what happens? Who responsible? Are you gonna foreclose on the house if it's in probate? because eventually right, Corey, would say, I don't know, percentage-wise, out of all the cases you've handled, what percent ends up where the judge says this thing needs to be sold and and proceeds distributed to the family versus what percentage a family member eventually, you know, wants to get it or or move in and take it over. Cory: It's very rare, I think, that the judge would say this is what has to happen. I mean, there has to be a massive fight between the heirs or the siblings for a judge to do you gotta remember judges don't like to make those decisions unless you force them to. They're there to make sure that whatever decisions everybody is making are legal and in the best interests of the estate. So they won't they won't come in and make decisions against any of the parties unless they're forced to do it. ⁓ I've never been involved in one where not in a probate where the judge Jon G. Sanchez: Okay. Okay. Right. Cory: you know, specifically says this house must be sold. Now divorces are different. That happens all the time in the divorce cases. But typically the probates are when I get involved, it's because the heirs or the people in charge want to sell the property. every once in a while they'll get involved because they're still deciding do they want to sell it so we need value, or is the family going to keep it? And I'm happy to give my two cents on the value of it and let them decide. But it's I I think it and again Jon G. Sanchez: Yes. Mm-hmm, mm-hmm. Cory: I'm not an attorney. I don't want to pretend like I'm know all this stuff. I get involved on the real property side, but I've never been involved in one where a judge against other people's wishes, you know, said this property must be sold. I have been involved. I I closed three probates last month and two of them were on the last step of foreclosure, could have been taken at any point. And I think the third one was in a notice of default. So it's not uncommon, you know, for those things to happen. Jon G. Sanchez: Right. Mm. Wow. Yes, yes. Fascinating. right. You got a lot to ⁓ you're gonna you folks are in for a for a great treat today with ⁓ with Corey and Dwight ⁓ talking about that side. I don't I I'm not gonna profess I don't have any experience at that level, you know, with the with a I've never had any clients or anything go through that side of it with ⁓ with real estate. So I'm I'm gonna be learning like everybody else. So great stuff, guys. All right, get down to the stock market side of things. Well I joked about yesterday when the news broke. From the president when he announced his 20% pass fee, I'll call it, right? Remember he announced, and this is the reason we saw oil prices skyrocket yesterday. He announced all ships, not just Iranium, all ships coming and going through the Strait of Hormuz were going to be assessed a 20% fee. That money was coming the U.S. to reimburse us for our cost of military patrol and so on and so forth. I went on on the show to continue to discuss that, and I said, well. Here's the math. If a super tanker, which are the very largest, the very largest oil tankers that carry approximately two million barrels of oil, if super tanker was going through, they would be writing a check to the U.S. government to the tune of thirty million dollars. Just just for the right to go through. And I I don't know if that's round trip or if that's just one way, but ⁓ thirty dollars. Iran came out and said, Way too much money. We only charge them $2 million. And I made the comment yesterday on this show and I said, I just don't know how this can go. I don't know how we have the legal authority to do this. I don't know this is going to create chaos around the world because eventually everyone's to end up paying that higher price, right? The shipping companies are not going to absorb that. ⁓ The companies are not going to absorb it. Consumers around the world are going to absorb it. Well, sure today that Didn't even last, I think it was maybe 24 hours. I think it was maybe 24 hours that it left, ⁓ it lasted. President out today ⁓ and you know what, we're not gonna do this after all. We're not gonna do that because I made a deal with countries ⁓ around the and it's gonna be a big deal. We're gonna make a lot of money on this deal. Didn't have any particulars. Don't know what the deals or deal or deals are, don't know comp or countries are involved, but he said deals were struck. So we saw oil prices come down on that news, on that headline. we still have this, ⁓ it was ⁓ effective as of one PM Pacific Standard Time. the the blockade against Iran Iranian ships coming and going ⁓ through the strait. And ⁓ so decided ⁓ this this, you know, around one it was like ⁓ twelve thirty our Here comes the news headlines. We initiated some very ⁓ substantial bombing once again on Iran ⁓ just to kind you know. Put them in the in the right spot, I guess. so it's still going on. But what was amazing, guys, is ⁓ that happened today. And again, yes, the bombing started a little after the market closed, or a little bit before the market closed. Oil prices or oil markets were already closed for you know a couple hours. But we only finished the day up 98 cents on oil, 79.40. So that was one headline today. according to White, this is something, of course, you both are very involved in, and that is CPI. So here was the other catalyst to the strength of the market today. 5 30 this morning, we had the CPI number come out. just as we've said, remember, you can pretty much gauge what's going to happen with inflation based upon what's happened with oil prices. And we know June, we saw oil prices come down substantially. This, of course, was June CPI data. CPI down four tenths of a percent month over month, but still up three and a half percent year over year. Any comments from you guys on that side of it? Dwight Millard: ⁓ John, you saw the bond market just rally this morning off of that news. So mean, I guess it was to point, the overall's still too high, but at least that was a w were they weren't expecting that, ⁓ I would right? Okay. Were they were they expecting flat or even up or I mean ⁓ down four tenths is pretty good. Jon G. Sanchez: Yep, he did. No, no, not at all. Not at all. I I think I think I think yeah, I think they were looking for up three or four tenths if I remember correctly. Instead it was down four tenths. Yeah. Yeah. And then you get to core, you strip out food and energy, and it was up two points, ⁓ excuse me, ⁓ it was unchanged, month over month and up two point six percent year over year. So yeah, numbers. So that was that was good. Then we had comments come out of Kevin Worsh, of course, our new Federal Reserve chairman. Corey, I about you. I would love to get your opinion when we come back from the break. He basically said Dwight Millard: Okay. Yeah. Jon G. Sanchez: Inflation's gone. It's gonna be gone in the next five years under his control. Inflation's gonna be gone. So he's got ways to to do that. So will see ⁓ with the with the chairman to give you some details about ⁓ what he said and how what his plan is. And then again he ⁓ today he did give his ⁓ Humphrey Hawkins testimony. This is ⁓ or least it used to be called that every six months. The chairman of the Fed gets in front of the ⁓ the the ⁓ the house one day and the the Senate the next day and basically an overall report court about the economy. So He did that today. No major headlines coming out of there. Welcome back the John Sanchez Show on New Stock 780 KOH with Corey Edge of Vagility, Dwight Millard of OnCue Home Loans. right, we're gonna get to our topic here momentarily. What happens to your home if goes to probate? We're gonna get real life experience from Corey Edge. All right, we were talking about ⁓ again this inflationary report, CPI down four tenths of a percent. Shocked everybody, as Dwight indicated. We were looking for an increase year over year flat, or excuse me, core ⁓ was flat month month, year over year up two point six percent. ⁓ The headline that was up three and a half percent. So substantially well above the two percent. But again, Kevin ⁓ I was trying to find the story, but it's been deleted. basically indicated morning that you know, essentially what he's saying is under his watch, the gonna be pretty much gone, or at least down to the two percent Fed mandate within five years. Corey, did you pick up on that? Cory: watched a little bit of his testimony and I obviously heard his opening remarks that they had. you know, you can you can you can make numbers do whatever you want them to do depending on how you read them. Right. So if you're gonna get ten different committees and a hundred different people to kind of change the way the numbers are drafted I'm not saying anything wrong with Kevin Walsh, maybe it's the right thing. But Jon G. Sanchez: Yes, you can. Yes. Cory: You may still have the same amount of real inflation, but if it's not counted the same way, maybe the magic number comes in at zero. I it you know, who who knows how they do that. But he he seems from watch yeah, change the formula. I mean, from watching them, he seems pretty, don't know, I mean, dead on ⁓ and we'll see what he does. I mean, he's pretty stern. Jon G. Sanchez: ⁓ get your point. Okay. All right. Change the formula. Yeah. ⁓ yeah, no doubt. Yeah. Gimp. Yep. Absolutely is. right. So that ⁓ that that helped the markets out. and then Dwight, after all of the action I just said, I figured you'd like this one. Give got you an update from the ⁓ CME's Fed Watch tool. yesterday there's a forty two percent chance that the central bank gonna raise rates at the July meeting. That is now only ⁓ seventeen percent. So how you like that one? That make you feel better? There you ⁓ there you go. I you like that one. Dwight Millard: Mm-hmm. ⁓ good, good. I love that. Great news, great news. Yeah, and John, real quick, you got PPI coming out tomorrow. You think that's gonna move? You think that's gonna move anything? Okay, good. Let's hold off on my locks for one day. Okay, all right. Jon G. Sanchez: Yes, you do. Yeah, I think it'll be down. Yeah, absolutely. I think it'll be down. Yep, no doubt about it. All right, as far as the yep, there you go. There you go. As far as the Dow is a quiet day. We finished up just 10 when it was all said and done. NASDAQ 234.90%. And the SP up 28 points. Oil, I said earlier, up 98 cents, 7940 a barrel. ⁓ Coal a good day, $63.40 increase to $4,069.70. ⁓ Cory: Ha ha. Jon G. Sanchez: And Dwight, pretty quiet in the bond market. Two basis point decline, four fifty seven was our yield. How'd we do on the thirty year mortgage? Yep. Yep. Yep, that's right. Dwight Millard: Yeah, don't go on vacation. Remember that time I went on vacation, rates went up a full point. Well, I I mean, John, we we we got it was a good day. It was a great day after that ⁓ CPI number came out. But you know, you you got a five pace five basis point drop, but you know, the the rate on a 30-year fix according to mortgage news daily, just the average is six point seven. I mean, so that means it was six point seven five yesterday, right? Yeah, yeah. And so it's it cr it crept up. ⁓ we've had some ⁓ Jon G. Sanchez: Boy, that's edged up since last Thursday. Yeah. Yeah. Boy, amazing. I am really surprised. Dwight Millard: Yeah, yeah. Well, you know, and it's it's that Iran thing, you know, every time it just feels like that's gonna be a problem. so you know, now your FHA and VAs are that they're above now the six. I mean, those have been your champions unside of six, they're six and a quarter each. So I I know, maybe we get a little PPI relief tomorrow, you know, maybe get another five basis points that helps. But yeah, it's it's tough out there, John. It is. ⁓ Jon G. Sanchez: Yes. Dwight Millard: Really, really t and what's amazing, John. I just want to, you know, it's ⁓ I've never seen the amount of shoppers that I see now. Never, never. I you know, I give I give everybody on the long side, I on the quotes, I give everybody all four aces. There's nothing I hold back, right? It's all four aces. I know I'm not gonna play the game. And then they take it and they run with it, they go back and forth. And it's I've never seen it like this, John. It's ⁓ in 40 years. I don't. Jon G. Sanchez: No kidding. You y you talking on the loans on the loan side or on the okay. On the quotes. Yes. Why do you think that is? Because rates are higher and they're trying to squeak out every basis point they can, less? Dwight Millard: Maybe or they've been they've been, you know, educated that, yeah, why stop there, you know, go ten different land. I mean, it's it's it's pr ⁓ you know, I've I've i i in a lot of years I haven't done but I've I've lost a couple even at the very end. so it's been yeah, it's just still looking for the last and and I don't have anything else. You know, th they think these margins on these mortgages are you know, we're making tons of money and it Jon G. Sanchez: Right, right. Yeah. Dwight Millard: That's the furthest from the truth. I think there's a lot of lenders, John, in trouble. I haven't seen it, but I think there's more than you think because these rates are not going down. And you know, remember we were gonna ramp up staffing up. Remember that? ⁓ before the Iran conflict, everybody was talking about rehiring. Well, that's gone away. So yeah. But I Jon G. Sanchez: Sure. You've been saying that for a couple of months, yeah. Yeah. Yes, yes. Yep, you're right. Well, we'll get the we'll get the mortgage applications tomorrow for the previous week or so and ⁓ yeah, it'd be interesting to see what the volume is looking like at that point. right, we got a couple minutes before our break. Let's get ⁓ the the show going here. What happens to your home if it goes to probate? Again, home many of us represents more than just walls and a roof, right? It's a place we raise the kids, we bake cookies, we birthdays that are celebrated. I you name it. Doesn't doesn't matter. The home has a lot of sentimental reasons. Dwight Millard: Yeah. Jon G. Sanchez: That's also the largest financial asset many of you own. So today, I want to ask a question that very few homeowners have ever considered. So listen closely. What happens to your home if it goes to probate? Now let me stop right there as you're thinking about the answer to that. You may be saying, I don't know what probate is. We're going explain that. how do I get to probate? Really simple. Your house is Yeah, if you're married and your joint tenants' rights are survivorship on your titling, you're fine as long as one of you are still alive. So when the second one goes, then you're in pr in trouble. again, if house just in your name, maybe you've been a single person or you're a widow or you're divorced, whatever, again, your house listed in the name of the trust, it's going to probate. So as long as that house is listed under the name of a of your living trust, you're avoiding probate from that standpoint. So that's really it. But you have to ask yourself again. What happens to your home if it goes to probate? Who's going to take care of it? Who pays the mortgage? Can someone come in and sell it? How long does the probate process take? All of these questions start going through your mind literally at the worst possible time, right? You're you're dealing, you're mourning the loss of a loved one, and now you're trying to all these questions answered and you're frustrated, right? We've all seen that with clients. They get frustrated. they they don't have access to bank accounts because those are frozen also. And again, your imagination wander. So you have to ask yourself, what could have been done for probate to be avoided? So there was none of this hassle. when we come back, we're going to start it off with Corey and Dwight and talk about what exactly is probate, right? ⁓ we're going to get into the day, what the day after someone passes away. ⁓ We'll into can the home be sold immediately? and then really the icing on the cake that I can't wait for is Corey's probate experience. So a lot of great things we're gonna be touching with you. Welcome back to the John Sanchez Show One News Talk seven eighty KOH Corey Edge of Vidge, really due to White Miller Art of On Q Home Loans. Once again, we finished up 10 on the Dow and now's at gain two thirty four, the SP higher by twenty-eight. let's get down to our topic that we just really started talking about. What happens to your home if it goes to probate? All right, so we're gonna now move on to really the fundamental question for those of you that don't know. What is probate? So, Corey, take it away. Cory: Probate what's the easiest way to answer it? Probata is a court-administered process to an estate, liquidate an estate, whatever you want to call it, under the court's supervision to make sure that A, the assets are being sold properly, they're being sold at market value, whatever that may be, and that the money is being distributed or the funds is being distributed to where it's supposed to go. and you don't have to distribute money, you can distribute the property or any type of asset, but it's The difference is it's under the court's So every time you wanna do something, you gotta go get court approval, which sounds horrible, but it's not that bad. Everybody makes it sound ridiculous, but it's not that bad. Jon G. Sanchez: Is there cost involved, Corey? Cory: Of course. I mean, well, listen, there's gonna be court costs involved no matter what. You can do a probate on your own. Let's say that, you know, my Uncle Buck passes away and names me the administrator as well. I can go do in into the probate court and try to do that on my own. But I could also do my own root canals and cut my own hair if I wanted to, which I know a lot of times it looks like I do cut my own hair, but it's not you probably shouldn't go into the probate court without an attorney. And these things are. Jon G. Sanchez: Mm-hmm. Sure. Right. Dwight Millard: Ha ha ha. Cory: John, th it's not that expensive. I mean, I I guess it's all relative, but for let's call it a few thousand dollars, as long as you don't have some crazy estate, the attorney's gonna go and do other stuff, file their paperwork, get you through the process and be done and be done the correct way. Jon G. Sanchez: The average fee in Nevada is three to five percent of the asset value of the estate. That's where the numbers come. Cory: I don't I I I deal with a lot of attorneys that handle probates and maybe they have some other deals I'm not aware of, but I've never heard of anybody quote it in percentage terms. I could be completely wrong, but I've never had an attorney, so yeah. Jon G. Sanchez: Yeah, yeah. Yeah, no, yeah, no, it's that's just what the stats that's what the stats show. and you gotta think too, I I would think that the majority of of cases that do go to probate are probably not large estates. know you would think people that have some wealth obviously would have estate plans in place with with you know, designed to avoid probate. So that may be another issue there. Dwight Millard: Mm-hmm. Cory: The major you'd be surprised, but yeah, the the every once in a while I see a big one slip through the cracks, like, wow, how did that happen? But yes, you're correct. The majority of those type of estates are gonna be held in a trust and avoid the process altogether. Jon G. Sanchez: Yeah. Yeah. Dwight Millard: I ⁓ Corey, is it pretty boring if there's no real estate involved? Is a probate pretty I mean, is that what everybody's going after or trying to protect is the is a real estate end of it or Cory: Yeah, so I ⁓ the only ones I'm involved in have real estate, that's the only reason I'm there. But in Nevada, if the value of the estate is under $25,000, you don't even need to go to court. $25,000, I think, to $100,000 without real estate, you need to go to court once or twice and that's it. ⁓ anything, anything over that, or maybe it's a $300,000, you have to go to probate for the supervision. But here's the trick. Dwight Millard: Right, right. Jon G. Sanchez: Yeah, pretty expedited process. Cory: Anything that has real property, regardless of value, has to go through the full process. Doesn't matter. The value of the real property doesn't matter. So I just did one last month. Doesn't doesn't matter. If you have real property in there that you're going to distribute, you have to go through the probate process, period. Even if it's a little $10,000 piece of land. Dwight Millard: The net like the if you had a big loan on it and it's only worth it doesn't matter. Jon G. Sanchez: So, to summarize what is probate, court supervised administration, the judge is going to validate the will. Remember, anybody can write a will. they're gonna identify the heirs, pay the creditors, distribute the assets, so on and so forth. again, it's not bad as Corey said, but it can be time consuming, it can be expensive, it can be very frustrating for I've seen it with you know family members that don't understand the probate process, and they think you know their last parent died, was gonna come right over to them. ⁓ They don't understand things tied up in the court system, the probate court system. ⁓ so they get very frustrated with that. And course, remember as I always like to remind, it is a open public process. Corey, in all the probate hearings that you've gone to, do you see many people just lurking in the ⁓ in the ⁓ in the in the in the audience? Cory: So prior to COVID, we would have to go down to the court and sit in the court. And yeah, they were you everybody's allowed in. And especially on days where they were selling real property, you didn't know who was in there and what they were doing exactly. Ever since COVID now they do what's called Zoom calls. So people can still go in the courtroom, but everything happens over the phone. And Jon G. Sanchez: Standing Romola. Cory: You know, to be honest, I haven't been down there since COVID. So I don't know if there's still people in the courtroom. I'm guessing there might be one or two, you know, old timers in there, but the vast majority's happening on the phone. And but people can call in and listen. The number is public. You can call in, even if you don't have anything to do with any of the cases and listen to the whole thing, just like you can with criminal cases and any other public hearing. Yep. Jon G. Sanchez: Yeah. Interesting. Interesting. Did not know that. All right, let's go to our next point. Corey, the day after someone passes away, let's talk about first question. Who secures the home? Dwight Millard: Mm-hmm. Yeah. Cory: So it depends anybody can secure the home. Anybody that has an interest, if you will, or some kind of affiliation with the estate. But if the will named a person to handle the estate, that's going to be an executor. If the court has to name a person because a will didn't, that's going to be an administrator. Those titles don't become effective until the court quasi gives them to you and approves you to do those things. But in each case, that person usually will be the one to go in. Typically, John, what happens is it's going to be a spouse, potentially, if the deed was not handled correctly, or typically a a son or a daughter. They've been with the parent. I mean, this is just the normal way things happen. They know when the parent passes away. They know now that they're going to step into these shoes at some point in the future per the court order. So going to secure the property. Jon G. Sanchez: Mm-hmm. Right. Cory: They're gonna pay all the bills, they're gonna keep the lights on, because remember, all the bank accounts, everything is shut down. unless you have a transfer on death, you know, a a TOD with the bank, which some people do. Yep. But most of the time that person is going to step in and and secure things. Dwight Millard: Frozen. Mm-hmm. Mm-hmm. Jon G. Sanchez: Mm-hmm. T O D. Yep. Or your name's on the account. Yep. Or your name's on the account with the parent. Yep. Who has the legal authority? Cory: Well, the executor or the administrator will at some point, but that's not until the court them to have that authority or gives them the letters. So in the meantime, you know, it's a good question. I I don't I don't as far in my eyes, who has the authority to do things with the property like buy, sell, make decisions? Nobody does. And I know that sounds weird. But nobody does. But Jon G. Sanchez: Till the judge yep, till the judge issues that. Yep. Cory: Who has authority to secure the property and make mortgage payments? Really? Any anybody? I mean, there's Jon G. Sanchez: But again, let's emphasize they're paying out of their own pocket unless they're T O D, transfer on death on the account with, you know, dad that just died, or their name's on the bank account. Yeah. Dwight Millard: Yeah. Mm-hmm. Mm-hmm. Cory: Correct. Absolutely. Yes. Correct. Dwight Millard: Yeah, you know, John, and the one that I'm dealing with specifically, I mean, i everything's having to come out of his pocket. Everything. And he and and he's got a cooperative sister, so I mean, she's kinda helping, you know, they're kind of just limping along till they get the the final judgment or whatever it is that that they're getting. But yeah, it's it's putting a pretty good burden on him. You can't you can't take any money out on the house 'cause you don't own the house. I mean, it's you're on your own. Jon G. Sanchez: Yes. Yeah. ⁓ yeah. Nope. Nope. Yes you are. Yes you are. and the you know, thing to to keep in mind too, so again, anybody can sir secure the home, but you Corey, who has the legal authority to call you as the broker and sell the home, let's go down path very quickly. W wh when you know a house, you know, you're getting a call from someone, you know it's in probate, ⁓ or getting ready to, you know, dad just died yesterday. What what do you typically tell these people? I can't do anything at this point. Cory: So an a if an attorney calls me, then I know times out of ten it's legitimate. I do get phone calls sometimes from heirs or people that are interested in saying, I have this house, it's in probate, I want to do a listing agreement, this and that. I have access to the court system. So the first thing I do is look up the probate and read all the pleadings. And make sure this person has or is they say they are and has that authority. A lot of t not a lot of times, but sometimes they make a mistake where they will eventually have that authority, but they don't quite have it yet. so typically I'll call them back and say, Hey, usually there's an attorney involved. Say, hey, you need to call your attorney so he or she can explain this to you. Or if they've already given you my number, then we've got to wait a little bit longer because as of right now, you don't have the right to sign anything on that. But Jon G. Sanchez: But not yet. Yep. Yep. Cory: In my experience, how here's how much longer it's going to take you, you know, to get that authority, if you will. Jon G. Sanchez: Perfect. Okay. right. Let's go to ⁓ our next point. Can the home be sold immediately? Well, we just answered that question. No. So let's go through in more depth, Corey, the court authority, the the the personal representative or the executor, so on and so forth. Cory: So the home cannot be sold immediately because a person that owns a home is deceased. The estate is being monitored by the court. the attorney that's handling that estate is going to do all kinds of stuff with the will, put in the letters, do all the things to get that executor or administrator named the court. And they're going to get a court order, which is what I need, to show that, you know, Jamie Sue is now the administrator of the estate, which owns 123 ABC Street. That process, John, can take as little as a couple months. It can be strung out for two years. It depends on the estate. It depends on what other issues are happening. I will tell you that I have received calls before where people said, I want to put the house on the property. I explain it to them. Week later the house is on the market. And I just sit back and go, but they don't have anything, like they don't have the right to do it, but there are a lot of people out there that don't understand these processes. ⁓ Jon G. Sanchez: Mm. Wow. You mean other real estate professionals? Quote, quote quote professionals. Yeah. ⁓ can you imagine the title mess? Can you imagine hold on a second? As outsider looking in as you explain that, Corey, can you imagine Dwight's the buyer? You know, I'm I'm the I'm the the ding dong agent. Get to the table ⁓ and well, I'm I'm sure title would have picked it up probably, right? Before the closing, but Cory: Correct, yes, they will. Yeah. and and they are going to get stopped Title Title will pick it up prior to that, usually with the title report. but I'll tell you, I don't wanna segue somewhere else. There are some fly by night title companies now that may or may not pick it up. so everybody just needs to be careful. If there's if somebody is deceased and you're handling a property, make sure you have court authority to do it because it creates a nightmare. Jon G. Sanchez: Yeah. Dwight Millard: It it it sounds like a Corey, that in future could ha be, you know, scammed. You know, that type you know, it feels like that that you gotta be very careful, you know, with that 'cause it just feels like that's do you see that? You s Jon G. Sanchez: Yeah, good point. Cory: I I'm sure he I haven't seen that yet, but I'm sure it's happening in courts. Because the thing with these two, and I'm guessing it's everywhere all over the country, these are public documents. So with public documents, some smart computer guy can create something to go in and read these documents and find these deeds and do these things. And so yeah, it's a it's an area right for, you know, criminals to do things, but I would assume also that on the other side of that, the court system. Dwight Millard: Yeah. Yeah. Cory: has seen this before and now they've got procedures in place to make sure certain things happen. The title companies are getting hammered, hammered, hammered with AI fraud, all kinds of fraud. So their warning lights go off all the time. So you it's very hard to get through a reputable title company fraudulently, especially with the probate. Jon G. Sanchez: Yeah. Dwight Millard: Right, right. Mm-hmm. Yeah. Jon G. Sanchez: Perfect. When we come back, we're going to ask Corey the the the million dollar question. Give us some quick war stories of what it's like to sit in probate court you know, over the years with his experience and you know, let us know how it really goes. Not just textbook, but real life answers. seven eighty K way's Mr Millard, your phone number, sir. Dwight Millard: Yes, sir. Two four zero two zero two two. Jon G. Sanchez: Mr. Edge. Cory: Six seven three six seven zero zero. Jon G. Sanchez: Perfect. right. Dwight to make sure, and I and I welcome this. He wants me to to to re explain one more time that a makes you go to probate. Just having a will. Or not having a will makes you go to probate. So just want to make sure everybody's clear on that. Right, Dwight? Is that clear? Yeah. Okay. ⁓ Dwight Millard: Mm-hmm. Yeah, yeah, yeah, yeah. Exactly. I I think I think I I was just thinking as people listen, they think, Well, I've got a will. A will does not prevent you from going to probate. The only thing that does is a living trust it you know, that you've discussed. So Yeah. Jon G. Sanchez: No. As I as I've said many times when I cover estate planning, our our our old dear friend Jamie Kalicki, remember he he would say the following, he'd said, a will is nothing more than instructions for the probate judge. ⁓ is, I know. Yeah. ⁓ of one of those many sayings, a will is only instructions for the probate judge. ⁓ Corey, here we go. Let's get some stories going here, man. ⁓ Let's about some more stories that you have gone through. I'll let you just kind of run with it. Some things that can learn from. Cory: Yeah, that's true. Yeah, that's a great point. Yeah. Yep. I like that. Dwight Millard: Yeah, it's probably true. Yes, yeah. Yeah. Yeah. Cory: What do you want to hear about? Well, I I mean I been so many, John. I just one of the ones that I closed last month, which was the first time I had to deal with it, was they were a non-married couple, common community property or common property, 50-50, without the right of survivorship. Unfortunately, the girlfriend, if you will, in this story passed away. that gave that created an estate for that 50%. The girlfriend's, you know, heirs didn't really care for the boyfriend. And so they kind of forced a sale. Now, by forcing a sale, I guess I kind of lied to you in the beginning of the show because that was one where he didn't want to sell. It took about two years. The court finally interjected and said, You're gonna sell this property. And so they closed the property, but that was just a fifty percent ownership of that half. Jon G. Sanchez: So let's educate the audience. What caused that? It's the titling that caused that situation. So explain that. Cory: That that was the title. They did not have, they were 50-50 owners, tenants in common, but they did not have the right of survivorship. If they would have had the right of survivorship, the deceased interest would have automatically transferred over to the boyfriend. ⁓ I think they didn't have it purposely, although he contended, you know, differently at to the probate judge, but the judge wouldn't buy it. So that's how we ended up. Jon G. Sanchez: True. True. Why in name would anybody have their property listed tenants and common and not joint tenants' rights or survivorship? What's the what's what what is there I've never come across a valid answer for that. Dwight Millard: A breakup. Cory: for for this exact reason. Because were, again, I'm gonna I'm not gonna give you the minute but this was a boyfriend girlfriend situation. Girlfriend passes away. they wanted to make sure, and they did it rightly so, that if something happened to her, there was an estate created to where her heirs, which unfortunately in this case were her parents, got their her 50% of the estate. Otherwise it would have transferred to boyfriend. Boyfriend could have done anything he wanted to with it. Jon G. Sanchez: Yeah. Mm-hmm. Okay. Okay, okay, okay. ⁓ Cory: and so it was a it was a in the beginning we kind of questioned it the same way either, like why would they do that? And then it kind of dawned on us like ⁓ they actually actually pretty smart that they do it. But the boyfriend tried to contend that, we meant to do gen tenants and commonwe never recorded it, but the judge wasn't buying it. So yeah. ⁓ I've had one ⁓ Jon G. Sanchez: Yeah, I didn't buy that one. All right. Interesting learning story there. ⁓ we got time for one more. Cory: I was just saying just real quick, not to get into all the dirty stuff, but I had one a couple years ago, and this is where you've got to be very careful. There were three siblings. they chose the that lived closest to mom to take care of it. Mom passed away, the other two lived out of state. The one that was closest ended up forging a reverse mortgage on the property. Took a bunch of money, gambled away, cleared out about 300,000 in bank accounts down at the local casino. ended up in jail from all this. And so the courts are there to protect all these things. So if there's if there's more than one heir, especially if they're siblings, sometimes choosing the one that's closest to the person isn't the smartest one. I mean, only the family knows those things, but I deal a I deal with a lot of Jon G. Sanchez: Right. Cory: executors that live out of state even though they have to have an in-state person at the same time. But typically I would say choose the one that you think is the most financially responsible, savvy, whatever you want to call it. because the one closest to mom or dad sometimes is there for a reason, unf unfortunately. Jon G. Sanchez: Savvy. Yep. Yep. Dwight Millard: Yeah. Jon G. Sanchez: Yeah, that's right. Dwight ten seconds. Continue making the mortgage payment during probate? Dwight Millard: Absolutely. Absolutely. Give yourself a fighting chance. Yeah, keep everything current. Jon G. Sanchez: Beautiful. job, guys. We could do this a three-hour show on this topic. We'll have to come back and revisit it. Excellent job as always. ⁓ bless everybody. We'll see you tomorrow on the John Sanchez show.