What to do if I’m a beneficiary to an estate that has a house and the executor has proposed that the estate sell the house but “retain the mortgage”?

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What to do if I’m a beneficiary to an estate that has a house and the executor has proposed that the estate sell the house but “retain the mortgage”?

Can the estate be probated and the assets distributed to the beneficiaries if the house is under a mortgage “held by the estate?” If the question sounds strange, the proposal sounded stranged to me to.

Asked on December 5, 2012 under Estate Planning, New York

Answers:

Victor Waid / Law Office of Victor Waid

Answered 8 years ago | Contributor

 

The proposal sounds strange and I don't understand. You as a beneficiary can demand the house be sold, at which time upon close of escrow, the mortgage would be paid off; in the meantime the payments and casualty insurance on the property must be kept current, otherwise the executor will be liable to the beneficiaries, and the beneficiaries will suffer a major loss, if a loss occurs.


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