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

[Mark Anderson]

I recommend that you seek the lender's approval for the sale before asking the court to confirm it.  That way you can answer a question that I anticipate the court might ask: has the lender approved of this sale?  This will also avoid a circumstance in which the lender could challenge the sale afterwards, creating much more work for the estate and thus incurring fees that the estate may not be able to pay.  I would not ask the court to approve the sale prior to having lender's approval.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jon Fritzler
Sent: 01/02/2024 2:50 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Is lender approval required for short-sale of property by an estate?

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>


-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20240103/e9847deb/attachment.html>