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tirips · Mar 15, 2007, 04:19 AM

I'm the executor of my deceased mother's estate. Her mobile home was appraised for approximately $1500 less than her total mortgage on the house. Aside from that, her debts far outweigh the cash and assets that can be liquidated. Is it possible to let the mortgage company repossess the house, and if so, what bearing would that have on paying off her remaining debt and settling the estate?

Cvillecpm · Mar 15, 2007, 04:32 AM

Talk to the bank about a "give back" plan. You need to decide what bills to pay and which to not pay... if a family member needs the MH for housing, securing it and continuing to pay may be a better option or giving it to a local non-profit who can use it for emergency housing.

Check to see if any credit cards have insurance on them as they may be paid off automatically once they know she has passed.

tirips · Mar 15, 2007, 04:48 AM

What is a "give back" plan? Nobody needs the housing.

mr.yet · Mar 15, 2007, 04:56 AM

As executor for the estate you can only pay the debts from the liquidation of the estate assets, they will go first to the secured debts and if anything is left over than unsecured debt.

As executor you are not personally respondible for the debt left over.

tirips · Mar 15, 2007, 06:12 AM

Secured debts would be the home mortgage and a personal loan with a vehicle as collateral?

mr.yet · Mar 15, 2007, 06:13 AM

Yes that is correct.

Fr_Chuck · Mar 15, 2007, 06:30 AM

I would say, without being mean, that you do not know the laws or even the terms used to be helping with the estate. Normally the property is either allowed to be repossed or property sold to cover what debts there are. After all the money is gone, the rest of the debtors are informed there is no money left.

But there are specific rules that need to be followed, I may advice you get a local pobate attorney to assist you in disposing of the estate and notifying the debtors of all actions.

You are not to agree or be responsible for any debt personally.

tirips · Mar 15, 2007, 07:09 AM

You are correct. I don't know much about estate law. That is why I am asking questions on this message board. I'm also asking questions because there is no money to hire a probate attorney. I just wanted to find out if I could allow the house to be repossessed by the mortgage company as a means of settling that debt, so that I could settle the other debts with what was left. My big issue is: do I need to attempt to pay off the mortgage and personal loan on the vehicle BEFORE I ask the mortgage company to repossess, or if I can get the mortgage company to repossess before I pay everything else off? And by the phrase "I pay," I mean the estate.

excon · Mar 15, 2007, 07:56 AM

Hello t:

Your questions are valid. Apparently nobody here KNOWS the answer. Oh sure, you've gotten good advice, but if you do it wrong, you could be held personally liable.

I don't know if you have to pay off the mortgage first. What I do know, is there is a formula (law?) for doing it. That is why you need an attorney, and that's the FIRST place I'd spend her money. By the phrase "her" I mean the estate.

excon

ScottGem · Mar 15, 2007, 08:16 AM

To reiterate, if you don't do this right, you could find yourself being sued for mishandling the estate.

Generally, you have to assemble all the debts and pay them from the assets, paying secured debts first. But if you let the MH be repoed and there is still a balance, but you pay off other debts first you could find yourself being sued by the MH lender.

A probate atty will take their fees from the estate and off the top. So it really shouldn't cost anything. At the least I would consult with one, most will give a free initial consult.

tirips · Mar 22, 2007, 05:21 AM

Thanks a lot. Your answers have helped. I will be contacting a probate attorney to find out a little more.