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For my father's estate, he had a house in NV & he was the only one listed on the deed.

Asked almost 3 years ago - Denver, CO

What can the bank do that holds the loan? We don't want to take posession of it since it is worth 30% less than he paid for it. Can the bank attach legal claims to anything in his estate? The only thing he had was an annuity that was paid to his three sons. Will we be liable to pay the bank for his house out of his estate. We would just like to let the bank foreclose on the house.

Additional information
For loan value, he bought for $230K, he put $25K down so his original prinicpal was $205K. The market value is only $180K now--he's had it for three years. The property is basically useless and worthless to us and we don't want to take possession of the property unless they are going to pursue one of us (his sons) for payment.

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Attorney answers (2)

Ronald Anthony Sarno

Reputation Level 20

Answered almost 3 years ago. Litigation Lawyer in New York, NY.

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Your best net is to declare the estate insolvent and let the bank take title. Do not listen toanyone who says you have a personal obligation to pay off the loan.
You can as executor or administrator inform the bank there is no money to pay off the loan and they can take possession.
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LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.

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Michael Hassen

Reputation Level 14

Answered almost 3 years ago. Class Action Attorney in San Francisco, CA.

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Generally I agree with Mr. Sarno, but you haven't given certain critical pieces of information. For example, when did your father purchase the home, what is its current value and, critically, what remains to be paid on the loan? If your father put 50% down, then there may still be equity in the home even though its value have decreased by 30%. If there is equity above and beyond the bank loan, then you also need to look at whether any other loans (whether a second or an equity line, for example) or liens against the property, just to be certain that it is worthwhile to keep the home.

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