My Friends father died. He had a house. At the point of death everything was up to date financially?

Question

(mortgage, property taxes, ect) after death the hospital that treated the cancer put a lein on the house. My friend who was not the executor stopped paying the mortgage. Due to very bad advice. 8-10 thousand was due. An auction of the house happened. It sold for 250$ thousand. Got to keep ALL of the belongings inside the house. Thankfully. Now the estate is closed. It was a miracle but the the hospital dropped the lein on the house. If the house never got auctioned it would still be in the family. Water under the bridge though.
If somehow by a miracle there is $$ left will it go to the family? The guy who stopped paying the mortgage is the heir btw. How do you find out how the funds were dispersed? Can I call and ask the mortgage company? Or does it have to be the estate lawyer/executor? Thank You :)

Answer 1

The lawyer that established the trust would get the proceeds, and would be up to them to disperse. How much was the house worth? It is rare to actually sell a house at auction and recoop the mortgage let alone spin a profit, but it can happen. You have to look at how much the hospital was asking for, how much the mortgage was, any late fees, insurance, taxes. Then you have the auctioneer fees, and the attorney's fees. If all that was below 250 thousand, then there is a chance that there is profit. Mortgage companies have ways of inflating the balance due in the case of a takeback, or foreclosure etc. They can tend to add upwards of an additional 30%, which may or may not be legal, but if no one catches it, they get away with it, if someone does catch it, it ws a simple oversight. Get someone to look over all the information. Chances are that there is no money left over.

Good Luck

Answer 2

You can file a motion with the court to determine the accountability of the estate or you (if you are a claimant of the estate)can simply call the executor and ask him/her to send you a letter regarding the proceed distribution of the sale. The executor has a fiduciary duty to all claimants.