Hi! I co signed a mortgage loan for my dad. I am not on property deed. My dad passed away three years ago. I can not afford my mortgage payments and his. I did try to rent it out. The property is underwater.. I payed $67000. It is now worth $18000. I want to deed the property back to the bank. They are willingto consider a deed in lieu but said the property needs to be listed by a realtor. They are in the process of foreclosing. I want to refinance my own mortgage. I have 5 more yrs. left on an interest only 10 yr. Loan. What are my options? Do I have to probate his will do to a deed in lieu? Can I just list the propertywith a realtor ? Are there any other ways to resolve this ? It sounds costly. Both financially and credit wise. What would an attorney charge for this assistance
State/Country relating to question: Florida
Contacting the bank to pursue a deed in lieu. Do I have to probate first?
Hello,Thank you for using JA..If the deed is only in dad's name, then when he passed, it would then be owned by his estate and would have to go through probate. If there was no will, then an Heir would need to file to be appointed administrator of the estate. If there was a will, it would be for an executor. The appointed person would then have the legal right to gather all assets, pay any debts and distribute any surplus to the heirs..But until someone is appointed administrator/executor (A/EX), no one would have the legal authority to negotiate with the bank on disposing of the property. The A/EX would then have the authority to list the property with a realtor as well as execute a deed in lieu of foreclosure if a deal can be reached with the bank..If the lender forecloses and sells the property, they can then sue any cosigner on the loan for any deficiency as well as come after the estate (if there are any assets). So this would definitely kill the cosigner's credit and subject them to having their assets seized to sell to pay the judgment. At that point, bankruptcy would be the only option to extinguish the liability for the debt..So no, going through probate is the only way for someone to get the legal authority to deal with the bank. If someone does it themselves, it would just involve the filing fees to file the probate case, usually $4-500. If they retained an attorney, I would opine it would run in the $2,500-4,000 range depending on the amount of work for the attorney..
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,Hi! Thank you so much for your assistance. Whet would you do? My credit is ruined. I do want to refinance my mortgage within 5 yrs. Suntrust said they would to a deed in lieu if I list the apt. andcomplete the financial paperwork.( hardship letter etc. ) Should I believe them! Would an attorney be able to negotiate on my behalf? I don't want to jump through all the hoops pay attorney ffees and find out it was in vain. What would you negotiate? Thanks.ArleneLooking forward to your reply!
Well, if the bank wasn't willing to consider a deed in lieu, I don't think they would have even thrown out the option. They can definitely sue you as cosigner if the house is foreclosed on. So basically you have nothing to lose and everything to gain by filing the probate case so you can be appointed administrator and the work with the bank to see if they would take it back. .The paperwork is typically available in a packet from the probate court clerk and is set up so that a non-attorney can complete it fairly easily. So my opinion is that it would be worth the time and effort to see if you could do a deed in lieu and have the bank accept the property back and forgive the outstanding balance..I don't think that an attorney would be able to do more than you could yourself because either they will do a DIL or they won't. But it is worth a shot to possibly get away from this debt..
12 yrs estate law, real estate. Wills/Trusts/Probate
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