Thank you for your comment. I will be writing an article on what to do if the homeowner files bankruptcy. Stay tuned!
Ken
Ken - Thank you for the scenario... What if an owner dies, the home is NOT in short sale, and there is negative equity. Can an heir NOT accept the inheritance?
Wendy, I am sorry that I provide a specific answer this question because the answer may be state-specific. Generally, though, the heir does not take the debts of the decedent. If the heir wants the property, that is accomplished by recording his interest. Then although the heir is not obligated to the debt, the creditor has a lien on the property and can foreclose if it is not paid. So if the heir does not take an interest in the property, that heir is not obligated for the debt.
However, this assumes that the heir is not a tenant in common or by the entireties.
Great question.
Ken
Ken,
I turned away a short sale where the spouse had died and there was a will floating around that was being contested. It was just way to complicated of a situation and with a looming auction date it didn't make sense to pursue it.
Ken,
Oops, I did not even think about this scenario. It is strange, you think that you already know enough to avoid surprises, but that situation would sure be a big surprise. I would prefer not to have such experience, but I appreciate the advice
Brian, that was wise in most cases. There are some things you could do to salvage it, but you are not expected to have to know what to do. Those are the cases you avoid from a cost vs. benefit analysis and proper budgeting of your time.
Jon, it actually happens quite often. It is not difficult, you just need to accumulate this information into a little bag of solutions for when it does happen. Better to respond appropriate to salvage a payday.
Thanks for your comments.
Ken
Hi there
Found your post, in the last stages of closing a short sale deal. We have the approval from the lender, escrow has been opened since July 29th with funds from buyer.
The homeowner passed away Aug 13 2010. he has a life partner 20 years who was living in the house with him. she is not on the deed and they were never married. he does not have any children.
do not know yet if there was a will. have not had the phone conversation with the life partner yet.
sales contract was signed, by both seller and buyer.
escrow documents were not yet signed. sale to be completed by September 1st 2010
buyer is still interested in proceeding with the purchase. has all his loan documents in order.
what is the approach in conversing with the lender?
if no will, what kind of time line are we looking at?
You did not tell me if you were the listing agent, buyer's agent, or it is a me/me.
The listing agent represented the seller, and now he/she represents the sellers' estate.
To complete the short sale, find the heir, see if they can open a single asset estate and be appointed as the representative. In some states, like Indiana, there is a statute that provides for a home to be transferred immediately to a sole heir.
Nevertheless, you need someone to serve as representative of the estate or be able to take ownership of the property. Once that is accomplished legally, then the short sale can close.
Thanks for your comment.
Ken, I just ran across your blogs in the Idaho Real Estate Group and how appropriate to find this blog here since the originator of that group has "moved on" (just left the real estate industry). Therefore:
I am hoping that the new group that I started will gain more traction so all of our posts will get more activity. Please consider starting to post your localized blogs to this site as one of your “groups” instead of the current "Boise Idaho Real Estate" group so we can work on getting more of your blogs featured in the future! There were only 19 subscribers to this group so I will be contacting each of them to let them know my objective. http://activerain.com/groups/BoiseRealEstate
I just subscribed to your blog since Short Sales are such a huge part of our business these days. I received my Short Sale and Foreclosure Resource (SFR) certification from the National Association of Realtors and am the owner/broker of Progressive Realty Corporation in Boise, so I would welcome any potential referrals to my area!
Husband died intestate ... wife wants to short sale house and signs a listing agreement. I procurred a possible buyer ... before I could put the deal together, wife dies "intestate" .... do I still have a valid listing agreement and can I proceed to sell property thru PR?
what will happen if there is no will, and the heir doesn't want to get involve in short sale in California? there is also a large amont of taxes lien against the property.I am the listing agent, bur has no key to access the house, the owner passsed away a week after listing. There are several buyers.
Thank you very much.
Kim
Is it possible to short sale a home if the homeowner has passed away, it has not gone to foreclosure yet. It is still in the deceased name and mortgage with the bank is in the deceased name. He left no will, son is not responsible for the debt.
Where do you start? Obviously, can't do the usual Listing Agreement, and short sale documents.
Is it possible to short sale a home if the homeowner has passed away, it has not gone to foreclosure yet. It is still in the deceased name and mortgage with the bank is in the deceased name. He left no will, son is not responsible for the debt.
Where do you start? Obviously, can't do the usual Listing Agreement, and short sale documents.
Ken,
This is a great topic that has been & will continue to be relevant in many transactions.
Interesting case. We had s.s go into bankruptcy but never pass away. I figured it is a modified process of probate but it seems Hawaii's probate is a lot lengthier process.