[WSBAPT] Dealing with a mortgage during probate

Wed Mar 29 10:25:43 PDT 2023

I agree with Dalynne.

I have had many  estates with this issue where I am the PR. I generally proceed along the lines suggested by Dalynne.

An additional note is to sell the residence. Generally the PR can market, sell, and close the sale within  60-90 days.  That usually beats the Bank’s clock on a nonjudicial foreclosure. Often you can make the Bank restart the procedure because they issued the Notice of Default to the decedent instead of the “Heirs and Devisees” or the PR. Of course, you need to bring that to their attention with the news of the defect with their Notice. That will buy you additional time.

  Bruce Moen

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Wednesday, March 29, 2023 8:12 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Dealing with a mortgage during probate

Sharon, If there is money in an estate, then of course, continue to pay the mortgage.  If the PR is confident of the sale price equity more than debts, then they can “front” the monies and be repaid when the home sells.  This is addressed on a case by case basis.  It does usually take a few months for the mortgage company to start foreclosure so usually if no monies, the PR can skip a few payments but make sure you or the PR make contact with the mortgage company and review the contract.
If insolvent estate, I would say no do not pay but the PR needs to make sure they know the consequences of allowing foreclosure, not paying the mortgage and being personally liable if they are making the wrong decision.  The PR cannot ignore the debts/assets and must address these issues head on which I am sure you have advised the PR.  If there are other heirs to the Estate, I would also keep them informed so they can provide monies for the mortgage is they choose to do so and be repaid when the home sells.

If facing pending foreclosure and trustee sale date, we have recently obtained a stay/injunction against the trustee sale in probate in non-judicial foreclosure but it required filing a separate cause of action and hearing, motion to shorten time in Snohomish County.

Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
360.568.5065
360.568.8092  fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>
Website:  www.glglawgroup.com<http://www.glglawgroup.com/>
Attorney/client meetings will be handled by teleconference or virtually whenever possible.  If you would like to set a telephone conference, Zoom, Microsoft teams or in person meeting, please call or email my paralegal theresa at glgmail.com, angelina at glgmail.com<mailto:theresa at glgmail.com,%20angelina at glgmail.com> or dainagray at glgmail.com<mailto:dainagray at glgmail.com>.  Co-counsel Anna Thompson can be reached at anna at glgmail.com<mailto:anna at glgmail.com>.

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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 Inge Fordham
Sent: Wednesday, March 29, 2023 7:59 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] dealing with a mortgage during probate

Please reply to the list. I’ve always advised the PR to continue paying the mortgage to avoid foreclosure. Interested in how others advise their clients on this topic.

On Mar 28, 2023, at 7:53 PM, Sharon Rutberg <sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>> wrote:

Hi, folks –

When an asset in probate is residential real property that carries a mortgage, during the months before it is sold or transferred to a new owner (not a spouse), does the PR need to keep paying the mortgage? Or will the lender grant a forbearance until the property can be dealt with? Paying the mortgage could be difficult for the PR if there is not much liquidity in the estate.

Many thanks,
Sharon

Sharon C. Rutberg, Attorney at Law
Salmon Bay Law Group, PLLC
1734 NW Market St.
Seattle, WA 98107
206-735-3177, ext. 2
sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>
Website: www.salmonbaylaw.com<http://www.salmonbaylaw.com/>
Washington State Bar #47055

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