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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D'>I am on the Board of a self-help affordable housing non-profit where the lender in first position is USDA-RD. Our organization has a second. The owner died and payments have ceased. The deceased owner does have an adult son surviving who moved into the house, but is making no payments. USDA has filed a judicial foreclosure. I suspect you may have to do the same, in order to eliminate unknown heirs. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Paul Neumiller<br><b>Sent:</b> Tuesday, December 27, 2016 2:33 PM<br><b>To:</b> wsbarp@lists.wsbarppt.com; 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Default Under DOT and Deceased Debtor<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="Paul_Neumiller"><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><img width=250 height=150 style='width:2.6083in;height:1.5666in' id="_x0000_i1025" src="cid:image002.jpg@01D2605E.CCD7E920"></span></a><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>