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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 33703
Experience:  15 yrs estate law, real estate. Wills/Trusts/Probate
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Parents didn't add their North Carolina property to Florida

Customer Question

Parents didn't add their North Carolina property to Florida trust/will . Their mortgage is more than what it could sell for. I can't afford to make payments. Can my sons buy it for the lower appraised amount ??
Submitted: 7 months ago.
Category: Estate Law
Expert:  Barrister replied 7 months ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question..Can you give me a little more detail about what is going on here? It kind of feels like I am reading a story but starting in the middle and trying to figure out the beginning....Are parents deceased and you inherited some land in NC from them?.If so, are there assets in their estate to pay off any debts that they have?.Is the property still in their names?..thanksBarrister
Customer: replied 7 months ago.
Yes parents are deceased now I inherited their small cabin. It's value is about $ 35,000 less than real estate market value. It is in just their names the title and mortgage. They have a will and living trust in Florida and I'm the executive of it there. Their lawyer said it wasn't added to their assets list. It is 10 year old trust not updated. He said I have to go thru probate in NC since it wasn't included. There are no their assets in NC. There assets in Florida are 140,000$ . They have 3 adult children who live in Florida. I helped them with the costs of the cabin a lot and they have a notorized letter stating I only can inherit . The other siblings are fine with this.. It needs a lot of work and repairs.. I've been advise to short sale or foreclose . What are the consequences to their no estate or will here in NC? Would it affect their Florida estate money?? Siblings wouldn't like that.. Can I and my sons buy it at the appraised value now?? What happens to the deficiency they owe 35,000 or so??
Customer: replied 7 months ago.
Other
Expert:  Barrister replied 7 months ago.
Ok, there is just one estate but it has assets in both their home state of FL and another foreign state, NC. So if they lived in FL, then NC is the foreign state where a second probate case, called "ancillary probate" would have to be opened to settle their estate with regard to any assets there..But the notarized letter doesn't have any legal effect as it is not considered a legal will unless it has two witnesses who sign it and the testator signs it as well..So if they had a valid will in FL, it would control who inherited any assets anywhere. If it didn't specifically gift you the cabin, then it would fall into the "residuary estate" clause in their FL will and go to whoever got the residuary estate..With that said, if it is still in parent's names, then whoever inherits it would have to continue to pay any mortgage or the bank could foreclose and sell the property at foreclosure sale. So whoever inherits the cabin could sell it to you or sons for whatever they wanted to, but if the mortgage is not paid off, the bank will just foreclose and sell it...thanksBarrister
Customer: replied 7 months ago.
What if parents estate sold it to. me for the appraised amount which is lower than the mortgage by $ 35000. Who pays the deficiency amount ?? Or is it a short sale then ?? It was a rental and vacation home for them .. Then does their Florida estate pay the deficiency based on their income tax which was 15 percent ,so about 5,250$ ?? Shou
Customer: replied 7 months ago.
Not sure what to do.. I love the cabin but can't really afford mortgage and repairs..
Customer: replied 7 months ago.
What and who is residency estate ?? Would it be the three children of theirs??
Expert:  Barrister replied 7 months ago.
What if parents estate sold it to. me for the appraised amount which is lower than the mortgage by $ 35000. Who pays the deficiency amount ?? Or is it a short sale then ??.They are still personally liable for the difference if the bank forecloses and it sells for less than what is owed. You can only do a short sale if the lender agrees to allow it..Then does their Florida estate pay the deficiency based on their income tax which was 15 percent ,so about 5,250$ ?.I am not sure what you mean about the deficiency and their income tax... If the property is foreclosed on and sells for $35K less than what is owed, then the bank can come after the estate for $35K if it is still open. There is no "discount" on a deficiency...it is just what is left owed once an asset is sold at a foreclosure sale..What and who is residency estate ?? Would it be the three children of theirs??.Residual estate...that is what is left over after any specific gifts are made (i.e. my pocketwatch goes to Joe) And you would have to look at the will to see who inherits the residual estate, but it would probably be the children..If you feel your original question and any related follow ups have been answered, I would very much appreciate a positive rating on the answer I have provided so I receive credit for my work. If you have a new question the JustAnswer folks require that you start a new question page, but you can request me by putting "For Barrister" in the caption and they will get it to me..thanksBarrister

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