[WSBAPT] selling mortgaged real property in a probate

[Bruce Moen]

I've had this many, many times.

Three responses:

1.  As suggested, report to the mortgage company and request some slack.

2.  Race the mortgage company.  Once the foreclosure starts, calculate the time required for the foreclosure process to competition. List, sell and close within the required time frame. Risk: liability if you guess wrong and cannot close.

3.  Borrow hard money.  Risk:  the heirs/ devisees may object to the high interest rates.

  Bruce Moen
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Inge Fordham <inge at fordhamlegal.com>
Sent: Thursday, October 5, 2023 11:27 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] selling mortgaged real property in a probate


Every situation is different.  I have assisted clients in similar situations where the estate has little (if any) cash to continue paying mortgage payments.  I send a letter to the mortgage company informing them of this fact, providing the status of selling the property, and tell them we will contact them when the house sells.  Despite threats, I haven’t had a mortgage company commence foreclosure proceedings.  The key (at least in the cases I’ve dealt with) has communication – letting the mortgage company know of our efforts and ensuring them the debt will be paid.



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Inge A. Fordham | Attorney

Fordham Law, PLLC

3218 Sixth Avenue | Tacoma, WA 98406

Office: (253) 348-2657 | Mobile: (206) 778-3131

www.fordhamlegal.com<http://www.fordhamlegal.com>



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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Sharon Rutberg <sharon at salmonbaylaw.com>
Date: Thursday, October 5, 2023 at 11:09 AM
To: wsbapt at lists.wsbarppt.com <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] selling mortgaged real property in a probate

Hi, folks –



We have a probate where the main asset is a piece of real property. The will directs that it be sold, and the PR is in the process of doing that. The property has two mortgages on it, but when it is sold there will be ample assets to pay those off and have some assets left for the beneficiaries.  There is very little cash in the estate, so we have not attempted to make the monthly mortgage payments.



It took a while to get to market because a lot of clean up and an eviction were needed first. We have been subjected to a barrage of letters from Select Portfolio Servicing, demanding mortgage payments and threatening foreclosure. They seem immune to our multiple requests to hold off on these demands and threats while we have a reasonable to sell the property and pay off the loans.



Anyone out there have any advice about how to deal with this? Should we spend our scarce cash to bring the payments up to date? Is foreclosure really likely to happen anytime soon?



Many thanks,

Sharon



Sharon Rutberg, Attorney at Law

Salmon Bay Law Group, PLLC

1734 NW Market St.

Seattle, WA 98107

206-735-3177, ext. 1

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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