[WSBAPT] Is lender approval required for short-sale of property by an estate?

[Jon Fritzler]

This is a new one for me. I represent a PR in an estate where the net proceeds from the sale of the decedent's home is going to be less than the mortgage.  The estate is insolvent and the PR does not have nonintervention powers so court approval of the sale is required.  We previously obtained court approval to sell the property and now the PR has accepted an offer.

The realtor says that the lender will need to approve the sale because it is a short-sale.  Is that true when the property is being sold by an estate and the sale is subject to court approval?  If so, would you wait for the lender to approve the sale before asking the court to confirm it? Or, ask the court to confirm the sale while waiting for the lender to (hopefully) approve it?

Sincerely,
Jon M. Fritzler
Attorney at Law
717 E. 22nd St.
Vancouver, WA 98663
Tel. 360.818.4431
Eml fritzlerlaw at outlook.com<mailto:fritzlerlaw at outlook.com>

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