[WSBARP] Default Under DOT and Deceased Debtor

[Jay Goldstein]

Reply to the list pls

We do similar work for Habitat down here and this situation may show up in the future

Thanks

J

Jay A. Goldstein
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1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502
Telephone 360.352.1970  |  Fax 360.357.0844 |  www.jaglaw.net<http://www.jaglaw.net/>
jay at jaglaw.net<mailto:jay at jaglaw.net>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Tuesday, December 27, 2016 2:33 PM
To: wsbarp at lists.wsbarppt.com; 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBARP] Default Under DOT and Deceased Debtor

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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