If a decedent owes more on their house then market value and none of the heirs are able/willing to take over the payments how does the PR close probate?

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If a decedent owes more on their house then market value and none of the heirs are able/willing to take over the payments how does the PR close probate?

The mortgage on the house is about $20,000 more than what we can sell the house for. No one wants to live in the house or take over the payments. We have stopped making payments to the bank and think our only option is to foreclose but the bank has not started the foreclosure process. We would like to close out the probate what options do we have or do we have to wait until the foreclosure process is done?

Asked on August 7, 2012 under Estate Planning, Colorado

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You should as the PR negotiate as an home owner would in this situation.  See if they will consent to a short sale or a deed in lieu of foreclosure. Always ask them to waive the deficiency.  If they foreclose the estate is liable.  And I worry about your decisions as the PR with regard thereto.  Get help.  Good luck. 


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