9 months into probate....last asset to deal with is house with mortgage that is $85K underwater. Neither my sister nor I want to assume the mortgage, nor do we want house at all. What options do we have for probate to close if we don't assume mortgage with bank? We're 100% okay with walking away, but probate can't close without transfer of title or dealing with house in some other way. What are our options here? We want to make a strategic and financially sound decision (vs. a morally correct one), as the estate does have some cash assets, but if it goes to pay off mortgage, we're left with nothing and a house we don't want (tied to a fatal accident)....so looking for best options. Thanks
There are procedures to ask the Judge to be able to abandon property as worthless to the estate and close the estate. Since this is already in probate you should have an attorney representing you in this matter who would be the person to ask about your options at this point.
Francis S LeontitsisEstate Planning AttorneyPort Charlotte, FL ·
I have to assume you hired an attorney to guide you through the probate process. If that is correct, he/she should have sent a creditors' notice to the mortgage lender. If the lender filed a claim against the estate, then you have to resolve the claim with the lender before you can close the probate administration. There are many ways of going about that, but most of them involve your attorney negotiating with the lender. If the lender did not file a claim against the estate even though notice was sent, the lien can only be enforced against the real property (parents' house). If that is the case, the personal representative can probably petition the court for authority to abandon the home as an asset of the estate. Of course, you really should discuss these issues with your attorney, as each case has its own set of circumstances. This is often the kind of issue that prolongs an administration, so try not to get too frustrated with the delay. Good luck.
Jeffrey Michael BackoProbate AttorneyNorth Port, FL ·
I agree with Mr. Leontitsis. You should really be working with the attorney who you hired for probate. That attorney already knows all the details of your case and should be able to give you a more appropriate response. Advising you on these matters is part of what you are paying them for.
I agree with my colleagues that you should consult with an attorney to assist you with this. There are a number of options. One that many of my clients have utilized is negotiating with the mortgage company for a deed in lieu of foreclosure. In many cases, the lender will be willing to make a payment to the estate, because this process saves them the time and expenses associated with foreclosure. It also does not damage the property value as a foreclosure would. You (or your lawyer) might be willing to negotiate a several thousand dollar payment.
Best of luck to you and your sister.
James Frederick
