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

[Mike Winslow]

Agree with Richard's advice and have so advised clients in the past.
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Richard Wills
Sent: Friday, March 13, 2015 1:02 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Reverse mortgage, death of parent, lack of probate and
practical advice!
 
Assuming the condo is underwater & the estate as a whole is insolvent:
Don't open a probate.
Don't contact the mortgage lender.
Stay in the condo until the buyer at the foreclosure sale threatens to
evict.

I've had numbers of these, & typically, foreclosure doesn't occur for at
least a year after the D's death --- & often much longer (I've had some
where it's truly been years).  Meanwhile, at least in my experience, the
tenant effectively has rent-free use of the property.  The downside to this
is that if they continue to use the property, they're liable for it, eg, for
waste etc.  Therefore, it's often a good idea to retain insurance on the
property --- for example, if the property (eg, a home) burns up, is
vandalized, etc., the insurance should protect the tenant from any claim for
damages.


On 3/13/2015 11:59 AM, Sarah Jael Dion wrote:
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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