[WSBAPT] How to abandon under water real property

Thu May 21 01:05:53 PDT 2015

Hello Jayne,

Subject to someone else having some better understanding, I don’t see how you can have the PR discharged. No one else can deal with the lender to get out of the mortgage (DOT) unless there is another PR appointed. And, the PR can’t close the estate without paying or providing for all debts, etc. If the PR stops paying the mortgage, the PR will eventually get a Notice of Pre-Foreclosure Options and at that point the PR can start to negotiate with the lender on a short sale or deed in lieu. In your case, a deed in lieu sounds perfect if the lender will waive the deficiency, which they generally will. Maybe the PR can get the lender to agree to a deed in lieu now, but in my experience, once the loan goes into default, it is easier to get the lender’s attention. Once you get a deed in lieu or short sale, then you can close the estate.

Sincerely,

Tom

Thomas J. Westbrook

Attorney at Law

Rodgers, Kee & Card

324 West Bay Drive NW, Suite 201

Olympia, Washington  98502

Phone: 360-352-8311

Facsimile: 360-352-8501

Email: tjw at buddbaylaw.com

Skype: thomas.westbrook

www.buddbaylaw.com

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jayne Gilbert
Sent: Wednesday, May 20, 2015 10:38 PM
To: WSBA Probate & Trust Listserv; teunisj at wyerslawpc.com
Subject: Re: [WSBAPT] How to abandon under water real property

Hello there I am also working on a Probate where the Estate is now apparently insolvent and like your case the only asset is real property with a mortgage.

My question is what is the process for the PR to resign/be discharged?

On Wed, May 20, 2015 at 10:01 PM, Tom J. Westbrook <tjw at w3net.net> wrote:

Hi Teunis,

I am working on a similar situation now with an underwater estate property; last debt of the estate to pay. Difference is my estate is still solvent. The lender is CitiMortgage. They are amenable to a short sale or deed in lieu with no deficiency. That is the direction I am headed. I expect it should  work since they have agreed.

Sincerely,

Tom

Thomas J. Westbrook

Attorney at Law

Rodgers, Kee & Card

324 West Bay Drive NW, Suite 201

Olympia, Washington  98502

Phone: 360-352-8311

Facsimile: 360-352-8501

Email: tjw at buddbaylaw.com

Skype: thomas.westbrook

www.buddbaylaw.com

The information contained in this email and attachment(s) are for the exclusive use of the addressee(s) and may contain private, privileged and/or confidential information.  If you are not the addressee, you are strictly prohibited from reading, photocopying, distributing or otherwise using this email or its contents in any way. If you have received this communication in error, please notify us immediately by telephone at 360-352-8311 or by e-mail to reception at buddbaylaw.com, and destroy the original message from your electronic files.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Teunis J. Wyers
Sent: Wednesday, May 20, 2015 3:43 PM
To: wsbapt at lists.wsbarppt.com
Cc: Lorrie Knowles
Subject: [WSBAPT] How to abandon under water real property

Decedent was buying a home, financed through Chase, and backed by the VA. His sole heir, his sister, is the PR.  We obtained an order of solvency by the skin of our teeth, showing a little equity in the home and a few other meager assets.  There was a significant non-probate asset, a bank account, that went to the sister via survivorship on the account.

Turns out that the dual agency broker who handled the real property purchase transaction just sort of failed to mention how inadequate the well was. Now it runs dry if you do a load of laundry.

So, we have property worth about $140K, probably not marketable, subject to a mortgage balance of $144K.  We plan to report to the court that we are now insolvent. The PR wants to abandon the asset. How do we go about doing that within the context of a probate?  I am aware of RCW 11.18.200, but if the PR defaulted on the loan, could the bank then seek a deficiency judgment and go after the non-probate asset?

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Teunis J. Wyers @ Wyers|Wyers, Attorneys

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*************************************************

Jayne Marsh Gilbert

Gilbert and Gilbert Lawyers, PS

(360) 336-9515

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