in new york can an executor let a home go into foreclosure?
- 1 month agoFavorite Answer
This is something you need to bring up to the probate court..... Although if there is no money in the estate, there really aren't a lot of options. If you would be a beneficiary of the estate, I would suggest paying up the mortgage, fines, fees and interest, so that the house can be sold. Now I know the answer.... you don't have any money. Neither does the estate, and that's why it's being foreclosed on.
- babyboomer1001Lv 71 month ago
The executor can't stop it if he failed to continue to pay the mortgage and other bills that he is responsible for - as the executor of the estate.Source(s): Certified Paralegal, with 25+ years' experience & with Wills & Estates law experience.
- SlumlordLv 71 month ago
Sure, it happen more than you may think. If the home were worth less than the mortgage (or has little value due to disrepair), or if there is almost no money in the estate then this could even be a good idea.
- Coffee DrinkerLv 71 month ago
You said in a comment that there is not enough money in the estate to pay off overdue mortgage payments & late fees.
The executor should put the house up for sale. Hire an experienced real estate agent, let them do a comparative market analysis to determine the fair market value in its current condition, and have them post it on the MLS (Multiple Listing Service).
Some people have mentioned a short sale - they aren't wrong, but just to clarify its only a short sale if the value of the house isn't enough to cover the payoff balance of the loan plus the other costs such as real estate commissions and title fees.
If the value of the house is enough to cover the mortgage and selling expenses then the house can be sold like normal and any profit above the mortgage & expenses goes into the estate (which can go toward other debt, or become inheritance for the heirs).
If the value of the house is less than the mortgage balance and selling expenses then you have a short sale situation. You basically have to ask the bank to accept a reduced payoff amount as alternative to foreclosure. They might accept, or they might say no and proceed with foreclosure. but even if they do, the executor will know they did everything they could.
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- SimplytheFACTSLv 71 month ago
if you are the executor and can't sell the house for enough to pay off the debt, have you talked to the bank about just signing it over to the bank?
if there is no money to pay the expenses...if they are mismanaging the estate, court can be petitioned to remove the person and assign someone else.
a short sale can be attempted is eligible, but that is time consuming and needs bank approval...wouldn't really matter if it is foreclosed as the estate would get nothing either way.
if there is equity (they can sell it and have enough to pay off the mortgage) they should sell...unless someone steps up to cover the bills.
- realtor.sailorLv 71 month ago
If there is no money in the estate to pay it off, the very least you can do is a short sale. That's where the home is sold for less than the mortgage balance, with the lenders approval.
- Anonymous1 month ago
On purpose if there is a way to avoid it? They "can", but they may be in violation of their fiduciary duty. You didn't give any details or context.