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My MIL died a few months ago without leaving a will. The children have a contract on the house, but the mortgage company says the children won't receive the money for 1 year, rather they will hold it in escrow. Is this standard procedure? Shouldn't the children have an attorney to represent them rather than letting the mortgage company handle all of the legal matters?
Call me skeptical, but something is setting off alarms for me.
They have a contract on the house? to sell it to someone else? Who is handling the estate? Is one of them the administrator/executor or are they winging an intestate situation?
A mortgage company has no authority to withhold funds if there is an executor/administrator of the estate. I'm guessing they are winging things. In that case, there may not be authority to sell the house and the mortgage company is protecting itself.
They are trying to avoid probate. One of the SIL's husband went on-line and found out a way to handle this without going to court or having an attorney.
Yes, they have a buyer and the price has been agreed on. There is no mortgage on the house, having been paid off 30 years ago.
They have not consulted a real estate agent or attorney as they are trying to not spend any money. I am not comfortable with the situation but am not qualified to make any legal decisions.
There is no executor. One of them has appointed herself in charge of everything and the rest seem okay with that. It is an intestate situation.
They are trying to avoid probate. One of the SIL's husband went on-line and found out a way to handle this without going to court or having an attorney.
If there is no mortgage, how could a mortgage company hold any money? That makes no sense...
This is what I was going to say. Do you mean the title company wants to hold the money? A lender can't just hold money when they don't have a lien on the house.
Actually there isn't a lot of money involved. There are 6 heirs and the house is very old and inexpensive, but I agree this is not the time to cheap-out.
Thanks for everyone's comments. I'll try again to suggest an attorney but some people have to learn the hard way!
If there is no mortgage, how could a mortgage company hold any money? That makes no sense...
I was told that when they go to close on the house that the proceeds from the sale of the house will not be distributed to the heirs, rather held for 1 year in escrow.
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