Legal Question(s) about Estates....HELP!!??

A Widower dies 11 months ago, no will. Daughter opened the estate.
Has a house with a 50K mortgage....in foreclosure
Values at 190K!!
Has 2 kids...both in agreement to sell.
No Liens against deceased. No other mortgages.

2yrs Nursing Home...$80,000.00 from State Health & Social Services,
looking to attach (or has) to the estate.

Daughter ready to give house back to bank!!! because of the scary
$80.000.00

It's unclear if 80K has been filed as a claim against the Estate. (my
state they have 8 months to file a claim...haven't checked as of this
writing, but soon will)

Question(s)...

=B7Actually how scary is that 80k for the sale of the house?

=B7If it were filed as a claim against the estate, how difficult would
it make the sale of the home?

=B7Would the house HAVE to yield enough to satisfy debt or NO SALE?

=B7Could it sell while in estate for little more than what is owed on
the 1st mortgage? ...with a looming 80K debt from HSS attached to the
estate.

Why might one entertain giving the house back to the bank in this
situation?
=B7Is the Admin of the Estate (daughter) liable for the 80K in any way
personally?

=B7Does the 80K go away for the Admin of the Estate (daughter) in her
capacity as Admin...if the house is given back to the bank? (because
she was going to do that)

Could they sell it even if it didn't bring enough to satisfy the 1st
mortgage and the 80K?

Would the Daughter/Son/Estate still be liable for any balance left
(assuming the house could be sold for the highest offer they could
get.... 60K in ten days).

Would the 1st mortgage or 80K against the estate, get paid first from
the proceeds of a sale?

Re: Legal Question(s) about Estates....HELP!!??

In article <>,
"realEstateGuy" <> wrote:

> A Widower dies 11 months ago, no will. Daughter opened the estate.
> Has a house with a 50K mortgage....in foreclosure
> Values at 190K!!

> Could they sell it even if it didn't bring enough to satisfy the 1st
> mortgage and the 80K?
>
> Would the Daughter/Son/Estate still be liable for any balance left
> (assuming the house could be sold for the highest offer they could
> get.... 60K in ten days).
>
> Would the 1st mortgage or 80K against the estate, get paid first from
> the proceeds of a sale?

I think you need to talk this over with the estate attorney.
I don't see a problem here, and you appear to be asking a lot
of really silly questions.

The house is worth $190K. It should sell for that. The
escrow should generate about $172,000 after closing costs.
Subtract the $50K mortgage, and you have $122,000. Subtract
the $80K nursing home lien, and you have $42,000 left. You
split that 2 ways, each kid gets $21,000 from the estate.

What is the problem with that? Why would you consider letting
the house go cheap or sending it back to the bank? All that
does is make your $42,000 profit go away.

-john-

--
============================================================ ==========
John A. Weeks III 952-432-2708
Newave Communications
============================================================ ==========

Re: Legal Question(s) about Estates....HELP!!??

Well there is a total rehab needed here....this type of house 40K is
the magic number.
So I'm thinking get it for 60K (first mortgage balance and 10K to the
daughter)
Fix it for 40K..
Into it for 100...identical comp in 190s......nice spread....even if I
sold at a discount.

With 80k hanging over estate this is not so clear cut and easy.
Trying to figure out if it's doable....
Trying to figure out if I offered 60K....which is almost more that it's
actually worth in current condition....would that fly? Could the estate
sell at that price..?
Or would it be a scenario where that 80k lein against nothing more than
the estate... makes it harder to sell....
Would it leave a balance if it COULD sell for 60 that would just go
unpaid..because there were no more assets? Would it attach to heirs?

Re: Legal Question(s) about Estates....HELP!!??

Well there is a total rehab needed here....this type of house 40K is
the magic number.
So I'm thinking get it for 60K (first mortgage balance and 10K to the
daughter)
Fix it for 40K..
Into it for 100...identical comp in 190s......nice spread....even if I
sold at a discount.

With 80k hanging over estate this is not so clear cut and easy.
Trying to figure out if it's doable....
Trying to figure out if I offered 60K....which is almost more that it's
actually worth in current condition....would that fly? Could the estate
sell at that price..?
Or would it be a scenario where that 80k lein against nothing more than
the estate... makes it harder to sell....
Would it leave a balance if it COULD sell for 60 that would just go
unpaid..because there were no more assets? Would it attach to heirs?