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Gerald, Esq
Gerald, Esq, Lawyer
Category: Estate Law
Satisfied Customers: 3987
Experience:  30 years of experience
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Estate question - There is no need to worry about estate

Customer Question

Estate question - There is no need to worry about estate taxes (overall estate is not worth $5.5M). My father has passed away and left the estate with a house with fair market value is less than the first and second mortgage. We are in the process of deciding whether to short sell the property. If the bank accepts the an offer that is less than the amount owed, is the estate liable to pay the balance of either of the mortgages? If we decide to go with a deed in lieu of foreclosure does the estate owe the balance?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Gerald, Esq replied 1 year ago.
Hello,Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question. First please accept my condolences for your loss. These situations are always difficult. Unfortunately, if there is a shortfall between the proceeds of the sale and the Mortgage, then yes the Estate can be liable for the difference. The same is also true for a deed in lieu situation. However, you may be able to negotiate with the bank to accept a lesser amount. They are not obligated to do so, but they may likely work with you. In most instances lenders do NOT want to carry REO properties (REO - real estate under ownership). Such properties are a liability for the lender. So they often have some motivation to work with you. I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow up questions, feel free to ask. Please note that I am generally unavailable Friday evening through Sunday. Please do not forget to give me a positive rating. It adds nothing to your costs but it helps me greatly. Thank you.If you are dissatisfied with my response PLEASE let me know before giving me a negative review so that I may try to be of better assistance. Or if you prefer, let me know and I can “Opt Out” and your question can be re-posted without additional cost to you. I will be fair to you and only ask the same from you.Good luck. Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing. Kind regards,Gerald