Foreclosure of Reverse Mortgage/Non Probated Property

[Mike Haworth]

Found a foreclosed property that was going to auction. Got the auction stopped and submitted a short sale purchase contract from my partner/investor to lender which was denied as the offer was less than the payoff and reverse mortgages require full amount of judgement or appraised value. Questions have been asked by lender's servicing company to provide evidence of who can legally sell the property. The heir to the father's estate never responded to any letters from lender during lis pendens process and the estate was never opened and property was not probated so the only heir does not have title to the property, however; the lender did accept the offer, ordered an appraisal and when I sent them a document that showed the son as the only heir they stopped asking even though it had not been probated and transferred to the son. Since the short sale offer was denied, I want to list the property for sale on the MLS as I'm sure it will sell quickly for more than my partner/investor was willing to pay. Is the son (the only heir) legally able to sign the listing contract and sell this property as he never obtained title to the property through probate? Thanks for all input and advice.

[Peter Walther]

If the property is in Florida, I think you'll find title to the property vested in the heirs/beneficiaries immediately upon the death of the property owner subject to the right of a personal representative to divest them of title for the sole purpose of paying claims of creditors including estate taxes.  I think you'll also find, if the property was the legal homestead of the decedent and the property descended to an heir (someone who would take title under intestacy) title passed free and clear of claims of creditors and therefore passes outside of probate.  You may need a court order finding the property was in fact the homestead of the decedent and identifying who the heirs/beneficiaries are.

I suggest you talk to an experienced real estate/probate attorney for advice on what you can do.