Foreclosure in Minnesota>Question Details

Sudden Home…, Home Seller in Minnesota

Both my parents died, leaving a house and major debt behind. I have power of attorney. The bank is threatening to foreclose. What should I do?

Asked by Sudden Home Owner, Minnesota Wed Mar 17, 2010

The payments are stacking up and are now three months overdue. The bank wants $4,000 right now. The house is worth maybe $90,000. The mortgage and a line of credit on the house add up to about $76,000. The options, I assume, are to try to sell the house and turn a small profit, or just turn it over to the bank right away. Either way, I don't want to send house payments in the meantime. What should or can I do? (The house is in Minnesota and I live there too.)

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Selling is the only way to go. If you let them foreclose you lose all equity.

If you do not pay the mortgage due you could lose it and not get that equity. Be careful about not wanting to spend money as it could instead cost you money.
1 vote Thank Flag Link Wed Mar 17, 2010
First you need to consult with an attorney right away and see what options you may have--was there a will--power of attorney isn't going to help you since they are now deceased--do try to sell the property first, don't just hand it over yet.
1 vote Thank Flag Link Wed Mar 17, 2010
Some good advise below. Attorney needed. Power of Attorney only effective for the living. You'll need more to sign for your parents now that they're gone. Contact the mortgae company and give them your story. I wouldn't send money! Contact a realtor and get a price opinion to see how much money there is in the home. Unless you're on the house note you don't have to pay. I have more thoughts but this should get you started. Be careful not to let the attorney burn too much time. They bill by the hour. Realtors only get paid when we sell something. Sorry for your loss. Happy to help if I can.
1 vote Thank Flag Link Wed Mar 17, 2010
If you do not want the house, I would sell it before it becomes a issue. Provide information to the bank so that they will agree to talk to you about the situation. But the longer you wait, the more likley your will have bigger issues. Between 4 and 5 months deliquent the lender will be sending the loan to foreclosure.

Time matters!

Keith Manson
First Weber Group
Certifed Distressed Property Expert
Metro Milwaukee
1 vote Thank Flag Link Wed Mar 17, 2010
I am sorry for your loss. Contact an attorney, and then a Realtor. If you don't live in the home, get it cleaned up, and on the market ASAP. I can help if you have any questions contact me.
1 vote Thank Flag Link Wed Mar 17, 2010
Many ways to proceed and the best way for you will take some dialogue with a professional. That can be either a Real Estate agent or an attorney. My first thought was to rent this property out while you either do a loan modification or a short sale. Renting it out may allow you to keep it as a long term investment. If you hire an agent to short sell for you, this will take some time. The agent will be paid by the bank. Perhaps he can offset your expenses. If you modify the loan, it may become a keeper for you proving to be a decent investment. Either way I look at this, there is an opportunity here. Dont just turn over to the bank. You may be entitled to cash for keys or some sort of moving expenses depending on how this is handled. A pro can walk you through some good options. Dont despair and take hope.
0 votes Thank Flag Link Wed Mar 17, 2010
Definitely ask for advice from an attorney and call a real estate agent to help sell the house if that is the outcome.
Web Reference:
0 votes Thank Flag Link Wed Mar 17, 2010
I'm sorry for your loss. I would contact a Real Estate Attorney and/or an Attorney that deals with Estates right away. They will be able to explain your options.

Good Luck.
0 votes Thank Flag Link Wed Mar 17, 2010
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