I was wondering if anyone has tried to do a short sale with a house that is in probate. I know that the lender could try and go after the difference in what is owed and what is actually accepted but if the owner is deceased is there anyone that they can go after? I am thinking about trying to get the lender to short sale a property that is in probate. I would be living in the house it would not be used to rehab/flip or wholesale. I only ask because a family member would be the Executor of the estate and I do not want to have the lender go after the family member for the difference in price. The amount owed on the loan is approximately 129,000 and the property is worth 220,000-250,000. The loan has been at least a month past due for the last 10 or so months. It has never gotten past 60 days but I think that the lender may accept a short sale in this case. I thought that it might be worth a shot to try a short sale. If it works great if not it is still a good deal. My main concerne is the lender trying to go after the Executor. I was just wondering if anyone has had any experience in this type of situation.
Thanks
Enrique