The Risk of Foreclosure During Probate

In the event of death or a serious illness, such as mental incapacity, a person would always want to make sure that his/her family is never left in a financial crisis; however, if he/she owns assets and/or properties (whether such asset/property is under his/her name alone or co-owned with someone else, a case called “tenant in common”), then a probate proceeding must be made.

A probate is a court proceeding wherein the validity of a deceased person’s Will is verified; it is also a means for the probate court to make sure all outstanding loans of the deceased person or testator (the person who made the Will) are settled and that whatever amount remains are distributed to all heirs in accordance to what is stipulated in the testator’s Will.

So many probate proceedings in the past have caused so much stress and division among family members, due to disputes by heirs who contest a Will, either because they feel that they have been denied of fair treatment or that the estate is not being correctly handled.

To avoid divisions from worsening, as well as to help ensure the proper handling of the estate, it is necessary to seek the help of a third party, particularly legal professionals, such as Chicago probate lawyers, who can work to deal with your concerns professionally and within the boundaries of the law.

There are cases, however, when the deceased has only one property to leave, like a home, but it is still mortgaged and its value has become less than the amount owed on the mortgage. Regardless of value, the deceased testator’s representative must continue to make timely payments on the mortgage as failure to do so can result to loss of property through foreclosure.

Besides failure to pay the mortgage, a foreclosure may also be due to the deceased representative’s assumption that payment of the mortgage may be suspended during administration of the estate or that payments to the mortgage are already waived due to the decedent’s death: these mistakes often happen if the chosen representative is not a lawyer and has not sought the assistance of one.

Preventing an estate property from being foreclosed is possible, though, by making sure that all secured loans are kept current. The representative may otherwise inform the lender, through writing, of the decedent’s death and his/her intents on the property; whether it will be distributed to the heirs or sold instead. Cedar Rapids foreclosure defense lawyers would be good help for the family of the deceased on this concern, especially if the lender pursues with a foreclosure without properly issuing notice to the representative.