My grandma passed away last year and left 25% of her estate to me after bills were paid. My mom had opened a reverse mortgage on grandma's house to pay for her care and the bank has started foreclosure proceedings in CT where the house was located. My mom had herself made trustee after my gram passed, which I agreed to...
I am named in the suit and would prefer not to be involved. Can I meet with the bank and sign over any interest? Do I even have an interest? The house is listed for sale and is the only remaining asset of value.
You're named on the foreclosure because as a technicality of Connecticut law, title in real estate vests in one's heirs/beneficiaries at the time they die, even though the probate process can interfere with those rights. You don't have an ownership interest in the house to sign over, based on what you have written, and you also have no obligation to do anything. The house should have been listed for sale by your mother a long time ago. Whether or not that's the case, if there is equity in the property and there has not been state aid in your grandmother's home care, the smart move is for her to arrange a quick sale prior to the foreclosure to pay the debt. If the estate would be insolvent (no home equity, or debts in excess of home equity and other assets), there's nothing at the end of the probate process for you to consider. In either event, it is your mothers issue to deal with, not yours.
Attorney Rosenberg is admitted to practice in Connecticut and Massachusetts, and currently practices in South-Central Connecticut with an emphasis on estate planning, elder law, probate, and tax matters. He may be contacted confidentially by email at [email protected] or by phone at (203) 871-3830. All correspondence through this website appears publicly, is not confidential, and does not create an attorney-client relationship between you and Atty. Rosenberg. Discretion should always be employed when posting personal information online. ~~~~~~~~~~~~~ All online content provided by Atty. Rosenberg on this and other websites is provided for general informational purposes only, and does not constitute legal advice. All content is general in nature. Attorneys are unable to ask the questions necessary to fully understand the legal issues faced by any particular poster. Postings and responses to questions only provide general insights on the topic discussed. They are not tailored to any readerâ€™s specific situation, will not be accurate in all states, and are never updated or maintained to reflect changes in the law. No person should take action based on the information provided by anyone on Avvo.com or any other law-themed website without first consulting a local attorney with significant experience in your area of concern. Persuant to Circular 230, no online content may be used by any person to avoid taxes or penalties under the Internal Revenue Code.
Sorry for your loss. I see these foreclosures after death happening more and more frequently as reverse annuity mortgages become more common.. You are asking in legal terms whether you can just sign a deed in lieu of foreclosure, which in Conn. requires the lender to accept it for it to be valid. The first issue that needs to be determined is whether you have an interest in the real estate at all, as that is all that is involved in the foreclosure. It's possible the lender will accept a deed in lieu, but you should determine first whether there is any equity in the property that you might be giving away. Banks have "procedures for determining whether they will accept a deed in lieu, so you should call the lender and find out the procedure you'll have to go through.
The house really should have been put on the market for sale long ago to prevent the foreclosure from happening, but there is often a lot that gets in the way of selling a deceased relative's home.. In the end, though however the property is transferred, whether by foreclosure, sale, or deed in lieu of foreclosure, you will not be financially liable to the lender, since you did not sign the mortgage note.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline