Do " Special Personal Representatives" for a Deceased Person's Estate have to provide their personal financial information?

I have a short sale for a deceased single person with no significant other who passed away. The estate with no positive assets and actually a lot of debt, including $20K in child support, was left to his 2 kids. (He has been divorced for at least 10 years). A person (not ex wife) with no financial interest in the property and who did not inherit anything (except a headache) is handling the estate as the "Special Personal Representative". This person is married and doesn't even live in the State where the vacant home resides. 

CitiMortgage is the bank and they have told me that there is no "outside" investor or MI company. They said that they "are the investor". They are insisting that we have to provide the Personal Representative's SSN so they can pull her credit, her bank statements, paystubs, tax returns, and basically everything as if she is the Borrower. I know that they do this if the non-borrower spouse is the one handling it and maybe there would be a reason to get this info for anyone that has contributed to the household by living there or that is related or has interest possibly in some way. She is basically a stranger, there was no trust, and she has no business relations with the deceased person. She is getting nothing from this.

When I call Citi, they will not put me past the girl who is handling the file who is the person one step before the negotiator and one step after the initial person. This girl will not let me talk to a manager or a negotiator and says that this is a government regulation. I told her it wasn't a government loan and she said that they still have to go from government guidelines. Even the other people I have gotten a hold of at the bank, who want to help, can't (like it isn't possible) for them to get me to someone in the negotiations dept. 

To make a long story shorter, there is a buyer (represented by someone else) who has their loan docs at title, have put $5K into the home to make it FHA lender approved, and have actually paid more than market (in my opinion) for the home. We need to get this through and the personal representative is not going to give out any of her personal financial information. I NEED SOME HELP! DOES ANYONE HAVE A SITUATION LIKE THIS? DOES ANYONE HAVE A NUMBER OR EMAIL OF A HIGHER END MANAGER AT CITIMORTGAGE? ANY SUGGESTIONS?

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Comment by Holly Jessop on December 17, 2013 at 6:45am

Ron, I did find the document that you were referring to. It seems more geared to successors that want to keep the home or that have interest in the home. I wish it would have had something specific for this situation. I think I'll file a complaint with them though. If a non borrower successor doesn't want to keep a home, then they shouldn't have to provide their personal information to be evaluated for a short sale for the deceased borrower.

Comment by Holly Jessop on December 16, 2013 at 4:58pm

Yes, I'm with you on this. What happened is she listed it with my husband thinking maybe they could get something out of it for the kids.  It turned out that the equity just wasn't quite there. Then, they got an offer that they thought would at least break even based on what she said the payoff was. Well my husband (who isn't detail oriented) made a mistake trusting what she said the payoff was and 2 weeks into it, they find out that $20K more is owed (for back interest and legal fees, etc.) I do all of the short sales for him and others, so he turned to me to try to save the deal, since they technically obligated to sell it by contract with no contingencies on the seller's side to get out of it.

I thought this would be a fairly simple short sale, 1 bank, a deceased borrower, a really good offer, and no assets to speak of. Well, I got stuck with a stubborn person who originally asked the negotiator who said they needed all of the financials from the special personal representative and then when I explained, no I think you misunderstood, this is not a non borrower spouse or a person who inherited the estate. And she just said, "It doesn't matter, they still need their financials. Its a government regulation." If you try calling CitiMortgage, you cannot get to a negotiator or a negotiator's manager on the phone at all! They all say that I need to talk to this same person and they apparently have no escalation process.I am trying to go through a negotiator for whom I just closed a deal with a couple weeks ago with the same bank. He has supposedly given this to his manager to call me, but that hasn't happened yet. He isn't aware that they need the financials, but he said he doesn't know everything and just forwarded to his manager.

I think at this point, the personal representative doesn't want us to not get paid for all of our work, but also the Buyer put $5K into the home for it to pass FHA apparently (kind of stupid I know) and could possibly sue for performance or whatever, since they were ready to close and the Seller didn't close. Otherwise, we would just tell the Seller (personal representative) to just walk away and let it foreclose. Which she may have to do, if we don't get the short sale done. She will not provide her personal information.

I am just trying to make this work and yes, get a commission possibly, as I am convinced that Citi doesn't need her personal financials to get this done. I just need to get someone on the phone who knows what they are doing.

I didn't know something was kicking in about successors? Where can I find information on that? I heard that this is happening a lot lately, but mainly with non-borrower spouses.

Comment by Holly Jessop on December 12, 2013 at 4:00pm

I will check with the attorney. The personal representative just said that the attorney said not to give them any of her personal information and the bank is just saying well if she doesn't give us her personal information then we will close the short sale, PERIOD.

Since I wrote this, I talked to B of A negotiator and he said that they wouldn't ask for her personal information.

But Citi won't let me talk to any managers or anyone except this stubborn person that it is assigned to right now.

Thanks for your input.

Comment by David Heroux on December 12, 2013 at 3:51pm

HI Holly,

I had a similar situation in FL. The owner passed away and a niece took over the estate. The estate attorney had contacted me to list the home. It was found to be a short sale. You will need to work with a lawyer with this one. The seller will have to get a Estate attorney file legal papers to sell the home. The taxes of the deceased will have to be filed and I believe that is what will be sent to the bank. An attorney will give you all the details. Email me at [email protected] .


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