Home Selling in Miami>Question Details

Darryl Siry, Home Seller in Miami, FL

My mother passed away. She is on the title of her condo in Miami, and I was on the mortgage with her as a co-signer (not a tenant). What happens now?

Asked by Darryl Siry, Miami, FL Mon Aug 22, 2011

I am designated as the executor of her will, where she wills the property to her 3 sons (including me) in equal parts. Since then she got married, but her husband (now widow) is not on the title. The mortgage is about $77K and a quick check on zillow estimates the condo is only worth $62. My desire is to dispose of the condo and no longer be attached to it on the mortgage, but it is a very strange situation and I'm looking for guidance. Do I need to short sell the condo or does the fact that she is deceased change the process?

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Darryl, I'm sorry about your mom. We successfully worked with many estates before. As I often mentioned here before, most real estate agents are experts in selling real estate. When it comes to legal and tax questions I would always recommend you speak to an expert in legal and tax matters. We are more than happy to recommend experts we had positive experience with before.
We definitely can help you sell your mom's condo for the best price possible. Zillow is a good benchmark, but you need a realtor to do a in depth analysis about the value of the condo. Should the situation turn out to be true that you owe more than the value of the condo than we have a short sale specialist on our team to help you through the process. There is no charge for the service.
If this sounds right for you, please contact me at (305)799-4011 or e-mail me at RealtorOliver@aol.com .
Looking forward hearing from you.
4 votes Thank Flag Link Mon Aug 22, 2011
This is going to be a bit complicated,and you are going to need an attorney to help. You have two separate issues to deal with: the first is that because the property is part of an estate, it probably has to go through probate. It may be that because of the situation, the ESTATE can sell the property to dispose of it, since there is not going to be any proceeds to deal with. If that is the case, then the probate court can direct that the property be sold. The second issue is the fact that you are on the mortgage. Again, this is more complex because of the estate, but it is likely that you may accrue some of the fallout from the short sale. What you need to consider is this: if she was current on her mortgage at the time of death, it may be a better strategy to continue to pay the mortgage, while at the same time, pursuing the short sale. Since this is an estate, and since (hopefully) the judge would direct it to be sold, the bank is going to be less likely to be "nasty" about it than if it were her that was in default. And, if the mortgage is current, they may also be willing to forgive you the default amount.
The other problem is potentially the IRS. When the home sold at short sale is the primary residence, the IRS forgives a substantial amount of the default. In this case, because it is an estate, and because you are on the mortgage, you need to find out where you stand in that regard.

Good Luck!
Web Reference: http://www.myriamshomes.com
1 vote Thank Flag Link Mon Aug 22, 2011
Hi Darryl, I am sorry about your lost. Before you move any further you need first to clear the property title, you need a attorney specially because the property is upside down and the lender needs to be notify, does your mother had mortgage insurance? Have a real estate attorney taking care for you is my suggestion.
Web Reference: http://www.vivianlaino.com
0 votes Thank Flag Link Tue Sep 6, 2011

This is a legal matter and you will be better off if you search counsel of a Real Estate lawyer.
Best regards
Yolande Citro
305 705 9105
Web Reference: http://www.yolandecitro.com
0 votes Thank Flag Link Tue Aug 23, 2011
Sincerely condolences for your lost. Darryl, I had the same situation with a property closed in March 2011 where four owner had the will and we hired a lawyer to finished it. If you need his name just click in my name or e-mail me nfigueroa3199@hotmail.com
0 votes Thank Flag Link Tue Aug 23, 2011
Hi Darryl,
Sorry about your lost.
About this question it is a legal matter and you need a Lawyer on this one preferably one with more experience in probates than anything else, as you know they usually says yes we do everything but make sure their expertise is in probates.
I wish you good look.
Web Reference: http://www.soldbuyrent.com
0 votes Thank Flag Link Mon Aug 22, 2011
First- you will need an attorney for the probate. Second, sell the unit as personal representative and make the distributions to the other heirs as the will calls for. THIRD and most important- do NOT rely on Zillow estimates!! Get a competent agent to give you a true estimate of value, then you will know whether or not it can be sold to break even, etc. if not, you will have hard time getting the bank to negotiate a short sale: been there, tried that, and they negotiate only with the borrower....ANOTHER option: continue paying the mortgage and rent the property out to cover the expenses until the estate is closed and/or value improves. You have the authority to sign a lease as personal representative
0 votes Thank Flag Link Mon Aug 22, 2011
Hi Darryl,
Sorry for your loss. I have over 15 years experience helping buyers and sellers meet their Real Estate needs. In this case, the fact that your mother left a will greatly simplifies matters as you do not have to deal with going through Probate court nor with conflicting demands on the property. This would have increased your disposition costs due to the legal expenses you would have incurred. However, you do mention that the property appears to be worth $62000 and approximately $77000 is owed on the mortgage. I undersatnd that you are a co-signor on the mortgage so you may possibly want to take this liability off your credit file. The fact that she is deceased does not change the process when dealing with the disposition of the property if it is a short sale. You, as a co-signer, are now fully responsible for the debt and any short sale decision (if the property is actually worth $62000) would depend on your financial situation. Call me or email me when you can and I will gladly discuss the process in detail with you. We need to determine the property value as well as analyze your financial condition to see under what conditions the lender may authorize the short sale. I look forward to hearing from you.
Jose I. Gonzalez PA 305-992-8624
Xcellence Realty
0 votes Thank Flag Link Mon Aug 22, 2011
Hi Darryl unfortunately you signed the mortgage and are reponsible for that debt. Still you can negotiate a short payoff with the lender. I would list the property with a realtor that has short sale experience they will be able to negotiate with the lender and most likely get them to waive the defficiency.

Alina F.
0 votes Thank Flag Link Mon Aug 22, 2011
First, let me say I am sorry for your loss.

If you were on the mortgage you should of been on the title.
If the balance on the mortgage is 77k and you do not think that you can get at least this amount for the unit then you will need to short sale the property. But, you will also have to contact the bank/lender and see if they are willing to allow the short sale. If you are not on title you should not have a problem since your mother is deceased and the deficiency can not be paid.

If your mother left the unit to you and your brothers was it left in a "trust" if so you can sell it as long as all 3 of you agree and are listed in the listing agreement.

Let me know if you have any other questions.

Liana Ycikson
Keller Williams Realty
0 votes Thank Flag Link Mon Aug 22, 2011
Darryl, this is a question best answered by an attorney. Once you discuss the legal aspects I recommend then contacting a tax professional, then a real estate professional. In that order.
Web Reference: http://www.mysharphomes.com
0 votes Thank Flag Link Mon Aug 22, 2011
I'm sorry your mother passed away. When you have time, please give me a call and I will be more than happy to guide you through the proccess.
Luis Mora
RE/MAX Paramount Properties
(786) 556-2119
0 votes Thank Flag Link Mon Aug 22, 2011
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