[WSBAPT] INSOLVENT PROBATE / TRASHED HOUSE

[Joshua McKarcher]

For what it is worth, I had a "surprise" insolvent estate several years ago with a home with a Quicken Loans mortgage. They were surprisingly easy to work with.

My client had reason to keep me involved, but the bottom line was the same as you may find yours could be: after calls with helpful agents there, Quicken Loans hired a group to come in, inspect/photograph the badly damaged home and accepted a deed in lieu of foreclosure from the court-appointed PR. They had no dispute with my firm's legal fees being paid from the minimal available other assets; although, of course, these end up being largely pro bono cases.

You may find that a call to Quicken Loans to present the "reality" may cause them to act sooner than later to foreclose, open probate to accept a deed in lieu, or "whatever" allows them to secure their interest sooner than if it is left unaddressed for a long time. But of course "no promises" from here.

Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Wednesday, September 30, 2020 12:35 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] INSOLVENT PROBATE / TRASHED HOUSE

Bummer. Land ownership descends automatically via RCW 11.04.250<https://app.leg.wa.gov/RCW/default.aspx?cite=11.04.250>; it's not possible to abandon real property. (No government wants to let anyone off the hook for paying property taxes.) Technically the heirs could be liable if anyone was injured due to a condition on the property, and they are liable for property taxes (though the county will just foreclose and is very unlikely to pursue personally).

The good news is they're not liable for the loan or any of decedent's personal debts. So this may be a situation to let sleeping dogs lie: ignore the property and hope that the problem goes away, by tax foreclosure or by bank foreclosure, before anyone gets hurt on the property and decides to sue. The heirs have to decide whether or not to take that risk, balanced against the cost of dealing with the problem.

I suppose they could offer to quitclaim to the bank in lieu of foreclosure, but most banks ignore those kinds of offers. Especially big ones.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone; please call the Seattle office. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis; please call the Seattle office.

MAIL AND DELIVERIES can be received at the Seattle office. For any other needed arrangements, please call the Seattle office.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Jennifer Gellner
Sent: Wednesday, September 30, 2020 11:55 AM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] INSOLVENT PROBATE / TRASHED HOUSE

Hi All:

I don't come across many insolvent estates, and I read all of your combined advice from awhile back about no PR being appointed and waiting the 24 months to see if any creditor takes action.

No PR appointed and no one wanting to serve.  Is there any liability for abandoning the real property?  Quicken Loans had given deceased a big home equity loan last November to pay bills and the house is not worth the outstanding $189,000 mortgage.  None of his kids want anything to do with it.  The house is in such bad shape and with black mold and if demolished, the lot would be worth $30,000.

Can the kids do nothing?

Jennifer A. Gellner, LL.M.
Principal, Gellner Law Group
P: (425) 235-5535 │ Toll-Free: (877) 252-0738
E: jennifer at gellnerlawgroup.com<mailto:jennifer at gellnerlawgroup.com>
8407 S. 259th St. Suite 203, Kent, WA 98030
505 W. Riverside Ave., Suite 500, Spokane, WA 99201

NOTICE:  The contents of this message, including any attachments, may be protected by attorney-client privilege, the work product doctrine or other applicable legal protections.  If you are not the intended recipient or have received this message in error, please notify the sender and promptly delete the message.  Thank you for your cooperation.

CLIENT ADVISORY:  A spam filter is in use in our IT system.  If you have not received a reply to an e-mail message within 48 hours, please call or leave a voice message for me.


-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20200930/d9cb92b5/attachment.html>