Q: I have begun to dabble in real estate and a friend told me that I could find real deals in probate property. How is this different from a foreclosure sale?

A: Default on a loan occurs when payments on a mortgage or note are not made on time. A person is officially in default when they have missed two or more monthly payments although being in default does not always lead to foreclosure. Some lenders are more lenient and help borrowers find a solution when the situation is temporary. If a solution is not achievable, the property is sold to satisfy the debt because the real property is considered as security under a mortgage.

The sale that follows the default is called a foreclosure sale. This is the forced sale of the real property in question at a public auction, traditionally on the courthouse steps. This follows a public notice posted at the courthouse and published in a local newspaper. Forced sales can also be the result of unpaid property taxes.

The lender who has not been paid may also bid on the property. The lender’s unpaid note can usually be used towards the lender’s bid making this a bargain purchase for the lender. These sales can also be bargains for a real estate investor.

Probate is the process of proving a will is valid. It is also the term for the entire process of the administration of estates of the deceased, including those without wills. This occurs with court supervision.

A probate sale is the sale of a home that occurs when the owner dies and the property is divided among inheritors or sold to pay debts.

In theory, the heirs paid nothing for the property and don’t usually want to keep it so their asking price might be low. Probate properties can sometimes be good bargains if the heirs are willing to sell at a reasonable price. This is not always the case.

Some probate situations also involve long court delays, especially id the deceased left no will. There may also be costs involved in making a property sellable.

Investigate foreclosure sales and probate sales thoroughly. Seek the advice of an attorney before committing to purchase any property that is involved in a legal action.

Attorney Sylvia Heldreth is a Certified Specialist in Real Estate Law. Her office is located at 1215 Miramar Street in Cape Coral.

This article is not intended as specific legal advice to anyone and is based upon facts that change from time to time. Individuals should seek legal counsel before acting upon any matter involving the law.