will lending institutions settle the loan for the estate of a deceased person for less than the payoff?
renee b asked:
Real estate mkt is very bad so can’t get a buyer for a house owned by my deceased relative. Trying to avoid foreclosure on the decendent’s home.
Real estate mkt is very bad so can’t get a buyer for a house owned by my deceased relative. Trying to avoid foreclosure on the decendent’s home.
It’s worth a try. The mortgage company doesn’t really want the property. They just want the money.
I don’t see why this situation would be much different than any other short sale situation from the banks perspective. It will probably be a little more complicated than it otherwise would be but the estate should be able conduct a short sale.
The lender doesn’t really want to foreclose because of the time and effort involved. And, once they take the property back it will be marketed as a “bank owned” property which nearly always receives lower offers than a non-bank owned property because it is seen as a distress sale. So, it is in the best interest of the lender to allow a short sale.
I would definitely contact the lender and ask them how to proceed.