Q: Can a mortgage lender sell a home before probate is finished ?
My father recently died with no will and no transfer on death deed on his home. Could the mortgage lender sell his mortgaged home before probate is finished ? If they can or do, will the estate receive the sale amount minus outstanding balance ?
A: Yes. If there’s a deed of trust recorded against property, no permission is required before a property can be sold by the trustee, assuming normal notification protocols are followed. If there’s a profit, the estate will get the profit.
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A:
Probate does NOT automatically stop a foreclosure so they could foreclose any time.
Generally with a house in probate, if you notify the mortgage company, they will agree to hold off on foreclosing for a few months. If it's a reverse mortgage you need to ask repeatedly. Not sure if it's a law but seems to be in 3 month intervals.
If the house is foreclosed the surplus (amount received above the mortgage balance) can be collected by the probate estate. However, in my experience a foreclosure sale usually nets a lower price than a regular sale so it might be advantageous for you to sell the house during probate.
1 user found this answer helpful
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