[WSBAPT] Process when estate real estate is less value than mortgage

[Timothy Lehr]

All,

I had a client that was a veteran friend of the decedent and decided to take on his intestate probate after decedent passed. We're now at a point where the only asset left in the estate is a piece of real estate. It's a crappy lot with a house that is condemned by the county. Mortgage owed is around $67k and the best offer in 8 months on the market is around $50k. It looks like the estate will end up insolvent.

What would the best next steps be for the PR? Let the bank foreclose and walk away? Request the court name the estate insolvent...? But then what liability does PR have the mortgage company? Just looking for a place to start to advise PR.

Thanks,

Timothy C. Lehr
Attorney & Partner

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p:   360.855.0131
e:   timothy at stileslaw.com<mailto:timothy at stileslaw.com>
w:  www.stileslaw.com<http://www.stileslaw.com/>

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