[WSBAPT] Reverse mortgage, death of parent, lack of probate and practical advice!

[Sarah Jael Dion]

Hello listmates!

I am debating how to advise a client in the following situation, and would be appreciative of thoughts/ideas from anyone with knowledge to share!

Client’s mother died at the end of 2014. Client recently hired me to assist her. Client has not opened probate. Client is a very nice woman, but is rather delicate in nature and is easily overwhelmed.

Client’s mother owned a condo where she lived with client, and where the client still resides. The mother took out a reverse mortgage, which became due upon her death. Client would like to buy the property back from the reverse mortgage company, but for a variety of reasons, has realized she will not be able to do so. The only asset in the mothers estate is the condo and it appears that the reverse mortgage is for more than the condo is worth. The reverse mortgage company will not communicate with me or my client because we do not have letters testamentary from the probate court.

The estate is insolvent, which means that opening probate would be especially $$ and would only benefit the reverse mortgage co. My client ideally would like a little more time to remain in the condo, but I don’t want her to run afoul of anything.I am thinking of advising her to (1) call the reverse mortgage company and tell them that they should go ahead and foreclose, and (2) just walk away from the whole situation without opening probate. Does anyone see a problem with that? If we go that route, may she just remain in the condo for a few months as the bank does what it needs to do, or must she evacuate ASAP?

Are there other suggestions for action my client could take? 

Thanks in advance for any ideas!

Sarah Jael Dion

Dion Law PLLC					
206-550-4005
sarah at dionlaw.com
dionlaw.com

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