Estate Law Questions? Ask an Estate Lawyer.
Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.
If the heirs want to sell the property or pass title to anything then they would have to open a probate but if they aren't going to get anything from the sale of the property (if, for instance all of the sale proceeds go to pay off the reverse mortgage) then the lender can open one and spend the time and money.
how do we tell the lender to open a probate, when they are stating that all they want is to be paid. The heirs can sell the property, refinance, short sell it or turn in the title in lieu of foreclosure.
Do the heirs want the property? Is there equity in it after the reverse mortgage is paid?
No they don't want the property and they believe that only $50,000.00 will be left after paying the loan, commission and escrow costs.
Is there any other property that needs to go through probate?
Other real estate, accounts, etc.?
no, they did not have any other asset
So there is really no need for a probate other than so the lender can get paid?
What about the $50k left over after the house is sold?
the heirs want to split the money 50/50
If the heirs want to split the money left after the sale then they have to do some kind of probate, otherwise the lender would have to do it.
However, they could do something other than a full probate, like an affidavit of heirship.
Usually a debt other than a mortgage will prevent the use of an affidavit of heirship but a reverse mortgage is still a mortgage.
What the heirs may want to do is schedule an appointment with a local attorney to get a price on an affidavit of heirship and to be sure that the local judge will allow one to be used with a reverse mortgage (some judges interpret the law differently than others).
An affiavit of heirship is less expensive and much easier than a full probate.
ok thanks for your help, I will let them know.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).