Replies to This Discussion

Permalink Reply by Chad Gelsinger on June 18, 2018 at 11:35am

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. 

Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on June 18, 2018 at 3:02pm

Never have had to do that with a probate. That is financial suicide for the Personal Representative. What if the Personal Rep has substantial assets or cash of their own? Why wiuld Pers Rep assume and get their credit report slammed? I woud 1) shout it iut to everyone that would listen, CFPB, Congrssnan, FDIC, Dept of Treasury, Attorney General. 2) let it foreclose.
Just ludicrous

Permalink Reply by Chris Zubrycki on June 18, 2018 at 4:36pm

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!

Permalink Reply by Brett Goldsmith on June 19, 2018 at 6:46am

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.

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