SHORT SALE in PROBATE

[Sean Dougherty]

I am in negotiations with a personal representative of an estate to purchase a home owned by the estate. It would be a short sale.

I know standard policy of a short sale is that seller cannot be allotted any funds by seller or agents. Is the situation any different if the seller is not the owner of the home? Considering that they were not the ones that defaulted on their mortgage, would lenders allow a payment to personal rep for their efforts in transacting the sale (considering rep would not benefit in any other way by doing a short sale)

Or would bank provide any funds to seller for their part in selling the home?

It seems the bank would encourage the rep to sell home any way they could.

Bottom line is: What would be the benefit of a personal rep to sell a house via short sale?

Any feed back is appreciated. 

[Minna Reid]

There’s  next to no benefit for the seller unless they need to get rid of the house to clear out the estate or somehow they are so personally vested in the dead person not having a foreclosure (which does happen). They’re not gonna get any money out of it. If somebody is living in the property that person may receive a few thousand dollars in relocation assistance but that’s probably a longshot and no guarantees.