What to do when a probate estate includes property that has an outstanding mortgage balance?
Most often, a probate estate includes a home or other properties that have an open mortgage balance.
It is crucial that payments on the mortgage are kept up to date. It is the obligation of the estate administrator to see this is done (if possible), to ensure that the home, including equity, is not lost to foreclosure. Of note, the Estate administrator may even be subject to fiduciary liability for not taking every viable step in protecting the equity in the Estate home.
This is a situation where Advance Inheritance can be of great assistance. Normally the estate has many obligations, but not a great deal of cash on hand. Mortgage payments and often property upgrading are very necessary to protect and maintain the Estate home prior to a voluntary sale. Advance Inheritance can advance the Estate the cash needed to do both, and then be paid back when the property is sold, refinanced, or the Estate is closed. Once the deceased has passed away, the lender will not be very helpful with the preservation of the equity in the Estate home. Lenders will not generally refinance or advance additional cash for modification to the property during probate.
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