Help with short sell

[Marcia Frick]

Thanks for any advice I get!! My Father passed away in April, 09 I moved in with my Mother so she would not be alone. My mother passed away In Jan. 2010 I'm the only child. I was made personal rep of the estate. I 'm still living in the home. The home is not yet paid for. I was makeing the payment until I lost my job 11-22-2010. The real property went to me, I'll have the deed when I close probate. It is a very nice (apperance wise) 1995 mobile home. It's 16 years old and needs a lot of work. I'm able to make a short sell offer because I'm not on the loan. Still owed is 19000 ( not sure of pay off ) there is about 10000 estimated repairs. What should my short sell offer be?? Please help!!

[Scott Hubbard]

Originally posted by Marcia Frick:

Thanks for any advice I get!! My Father passed away in April, 09 I moved in with my Mother so she would not be alone. My mother passed away In Jan. 2010 I'm the only child. I was made personal rep of the estate. I 'm still living in the home. The home is not yet paid for. I was makeing the payment until I lost my job 11-22-2010. The real property went to me, I'll have the deed when I close probate. It is a very nice (apperance wise) 1995 mobile home. It's 16 years old and needs a lot of work. I'm able to make a short sell offer because I'm not on the loan. Still owed is 19000 ( not sure of pay off ) there is about 10000 estimated repairs. What should my short sell offer be?? Please help!!

Marcia-

I am sorry for your loss. Unfortunately, I do not have good news for you. If indeed the property is worth less than is owed than it is indeed a short sale situation. However, since the borrowers are deceased, the lender will likely not allow for a short sale option for some of the following reasons:

1. Short sales is an option for borrowers to help the lender facillitate a sale and mitigate costs normally incurred as a forecloure. The borrowers, in return, should get some sort of incentive usually in the form of a smaller impact to their credit rating and/or a reduced deficiency (loss).

2. If it is a local bank that holds the mortgage, you can always try and approach them in person to work something out. However, if is a large bank like Bank of America, Chase, Citimortgage, Wells Fargo, PNC, etc., then you will unlikely get very far. But it is worth a try nonetheless.

3. Probate will determine the value of the asset using either an apprasier or local agent. If there is no value then the property will likely go to auction or whichever disposition is required for your county. There is no point in being an heir if your not receiving anything of value.

Other Options:

A.You might be able to get a mortgage and pay off the balance or you might be able to use probate to see if the bank is willing to less or fair market value.

B. You might wait for the property to show up at auction or as an REO and purchase it for less than Fair market value.

Since you mentioned you lost your job, you may have a hardtime qualifying for a loan. In my opinion, stay in the property as long as uyou can. The lender might approach you to lease the property from them. I have known people who have been able to squat on properties for years all the while not paying any rent.

C. You could try waiting it out, saving your money and eventually making them an offer to stay or even purchse the property. I have seen probate take a year or more, so you might try to save some money to purchase the property.

Whichever you decide, make sure you bone up on your local laws regarding eviction and squating. It is not worth getting into trouble over.