[WSBARP] Default Under DOT and Deceased Debtor

[Paul Neumiller]

I am working with my local chapter of Habitat for Humanity and trying to keep their legal costs down.  Debtor and volunteers put in sweat equity to build a house.  Habitat sold house to Debtor and carried back two loans and two deeds of trust.  Debtor is now deceased for several years and in default.  Can't find Debtor's family and no one probated Debtor's estate.  House is vacant.  Should Habitat 1) foreclose on the deeds of trust and go to a foreclosure sale (not sure how to do this against a deceased debtor) OR should Habitat get itself appointed as a special/limited personal representative and then, what?, sign a deed in lieu of foreclosure transferring the property back to Habitat.  I like the probate route because it would probably be faster and if Habitat uses the deed in lieu of foreclosure, Habitat can keep the house in its inventory of affordable housing.  Probably move the court for permission.  On the other hand, I doubt we would be able to find relatives to give the Notice of Pendency Proceeding.  Any guidance would be greatly appreciated.

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