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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">You are correct, if the house is going to sold, the mortgage holder has to be satisfied. Whether that's a short sale or not is an important question. I'm guessing
there is some equity in the house so there will be some positive net proceeds from sale, but the Estate is insolvent because the creditor claims total more than the net proceeds gained from sale of the house.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">You are correct, secured debts prevail over the claims of unsecured creditors of the Estate.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">To resign, the PR would need to petition the court to allow the resignation and get discharged. The PR can't just walk away--s/he has a duty to account for
the PR's time in charge, which means giving an accounting of all assets etc., and usually that accounting is given to the successor PR. If there is no successor PR, I don't know how that would work. It's possible the court won't allow resignation without identifying
a successor.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">If the PR Is living there, I assume it's done as a tenancy, and PR's rights should be as any other residential tenant.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">One thought--costs of administration and the PR's fee have priority over creditor claims. Maybe there are enough liquid assets not encumbered by security interests
that would make it worth it to stay in and get the estate done? If costs of administration take all the money, the creditors then get nothing.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">1320 University St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Seattle WA 98101-2837<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jayne Gilbert<br>
<b>Sent:</b> Monday, May 18, 2015 1:53 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] Estate Became Insolvent-Order of Payment-RP only asset<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">-- <o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">QP: does the mortgage company get the amount owing first? Or does the Mortgage get paid off in the class of Secured Creditors?</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Common sense tells me that the sale of the RP entails paying off the Mortgage Lien so that the buyer takes the property free and clear of the lien.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Also when the Declaration of Apparent Insolvency is presented to the Court and the Creditors receive Notice-can the PR resign, quit or otherwise walk away from the Case at this point/if so what kind of Declaration,
Petition, etc. does the PR present?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Or does the PR simply inform the Creditors of her intent to "walk away" or does this require a Court Order?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Would your answer change if the PR lives in the house at present with the Beneficiary's consent and the Mortgage Co. is initiating a foreclosure?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">The PR is not a beneficiary or heir.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">This is my first and hopefully, last Insolvent Estate.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Thank you very much for reading this request for guidance. I do appreciate it<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:13.5pt"><img id="_x003a_0_152-e" src="https://ssl.gstatic.com/ui/v1/icons/mail/profile_mask2.png" name=":0"><o:p></o:p></span></p>
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<p class="MsoNormal">Jayne Marsh Gilbert<o:p></o:p></p>
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<p class="MsoNormal">Gilbert and Gilbert Lawyers, PS<o:p></o:p></p>
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<p class="MsoNormal">(360) 336-9515<o:p></o:p></p>
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<p class="MsoNormal">*************************************************<o:p></o:p></p>
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