My sister passed with a will leaving her estate to her adult 2 daughters with me as the Executor; there are no assets with the estate other than the house; trying to sell the house has been difficult and now there are foundation issues to address before anyone would consider buying the house. The daughters want to let the house go to the bank before putting any monies into it... even thought their name is not on the mortgage... can the bank go to the daughters as beneficiaries of the estate for any mortgages owed? Can the daughters just walk away and what are my responsibilities as an executor?
I did consult an estate attorney initially but that was before it appeared the house might not sell; am I liable for anything if we just let the bank take it?
Thanks for considering this request.
Sue B.

... can the bank go to the daughters as beneficiaries of the estate for any mortgages owed?
No.

Can the daughters just walk away...
Yes.

and what are my responsibilities as an executor?
If, as I understand your post, you have not applied to the probate court to probate the will, you have no responsibility.

But if the daughters do decide to just walk away, you had best get a letter from the daughters absolving you of any responsibility. This may be handy to avoid hard feelings if, years from now, the daughters or their family have second thoughts.

A further thought: the bank really doesn't want the house either. It might be worthwhile sitting down with someone with the bank to renegotiate the mortgage. Explain to them the predicament they are in (probable abandoned house; needs substantial improvements; probable total write-off for the bank). Offer to fix it up if the daughters will agree to a new mortgage at a new, lower principal amount and at present-day interest rates (very low).

Again, your neices have no legal responsibility unless they choose to assume one. So be frank with the bank.

I did go to probate court in April 2009 to start the process; what are my liabilities with the mortgage or with the bank at this time. My first course of action is to find an experienced realtor to sell the house quickly; work with the bank to see if they'll accept any amount over the next 3 months and if it doesn't sell in 3 months after all my efforts... then let the bank take it... but then there will be no monies available to pay any administrative costs incurred so far; no executor fees to be paid to me and no reimbursement of any funeral expenses to my parents who paid the bill (and my sister expressed in her Will that her estate pay the funeral costs... any other thoughts or recommendations as to how I should proceed? Thanks for your time.
Sue B.

So you accepted the responsibilities of personal representative (executrix) then. No problem. You still aren't personally liable.

I would have your lawyer look into whether administrative costs, executor fees, and funeral costs are priority claims senior to the claim of the bank. I suspect that they are not. In that case, the plan you have set out seems to be a reasonable one. I would file a report with the court explaining your situation and get the court to approve letting the bank take it.