I have a probate listing where I have finally gotten to speak to someone at Bank of America to get a loan payoff. We would have to short sell the home that is going through probate. Bank of America told me that the personal representative of the estate would have to assume the loan and then do a short sale. They said they will not do a short sale on behalf of the estate. Can anyone confirm that this is true. I know every bank handles this situation differently. Thank you!
Hi Chris, IF this is an FHA loan, then YES, the Personal Rep will have to assume the loan to proceed. Some of the other lenders (Wells Fargo and Mr Cooper) are now following this FHA guideline. Bank of America has done this for several years now. Chad.
I have talked to everyone at B of A, escalated, everything. Still getting same answer. Estate will just let home foreclose.
PR has also been very slow to get back to me lately, so the writing is on the wall from B of A and from the PR. Was hard enough to get the third party authorization filled out by the PR at the beginning (should have been a sign to me at that point)
Thank you for the responses!
Never heard of someone having to assume a loan to do a short sale on an estate. Not sure if I've done a FHA short sale with deceased borrowers, but I've done 20+ with private investors with many servicers and never heard of this. Generally the heir or representative needs to be granted the executor of the estate through probate and then they have the authority to attempt to complete a workout option ( short sale ) on the account with the mortgage servicer.