Reverse Mortgage, Short Sale, Probate, California... Help!

[Phyl Hays]

I am the Administrator of an estate in California. Part of the estate is the home of the decedent which has a reverse mortgage on it and is underwater. The agent has a cash buyer and has initiated a short sale with HUD's servicer.

Anyone? What do we do with all the probate legal fees, back due property taxes, etc? Should I have just let this thing foreclose or have done a deed in lieu? I'm in unknown territory here and over my head.