QUESTION
What happens to a house being foreclosed upon due to a deceased owner?
Asked on Aug 05th, 2012 on Foreclosures - Florida
More details to this question:
The homeowner is deceased with no will, but does have a child out of wedlock who does not live with him. The child has been appointed a Guardian Ad Litem representing the estate of the deceased. I am wondering, without knowledge of the equity into the mortgage, why the child has interest in the property? Will the child benefit from the sale of the foreclosure? Is a shortsale possible at this time, or should I just wait until it goes to auction?
1 ANSWER
Real Estate Attorney serving New Port Richey, FL
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Jay W. Moreland, P.A.
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When a person dies, his or her estate takes over the deceased person's rights. Until the matter is fully litigated, the court doesn't know who will get what. It may be that there is a valid defense to the foreclosure. There may be equity in the home. The estate may want to agree to a short sale. The estate may want to sell the property and pay off the mortgage at a profit in which case the estate will get the profit. There may be assets other than the home that are part of the estate. If there are assets above the expenses, the child will inherit them. If there are debts in excess of the assets, there will be nothing for the child to inherit. If you are interested in purchasing the house, you might want to approach the estate with an offer. If no offer is accepted and there are no valid defenses, the home will be sold at a foreclosure auction. You could then bid at the auction as well.
Answered on Aug 22nd, 2012 at 4:04 PM