Short sale when owner is dead. Is this possible?

A gentleman has been paying the mortgage on his deceased uncle’s property. :angel The bank found out the uncle was no longer with us and will not accept payments from the nephew anymore. He’s been through the ACT program. I don’t know how since he doesn’t own the property. The house is still in the foreclosure process. The bank says he can sell the property. Again, I don’t know how since he is not the owner. Is there any way a short sale could be done on this property?

has to go thru probate unless theyre on title

Sounds like the bank should have left well enough alone.

http://www.reiclub.com/articles/ultimate-short-sale

Somebody had to have inherited that house, and whoever inherited it is the one you have to see about buying it.

I don’t know your whole situation, but it sounds similar to a situation we had a few years ago on a vacant property near one of our rentals, where the owner could not be located.

The bank was willing to accept much less than the balance on the loan as payment-in-full.
Getting that information was a whole story in itself; sense there was no owner to authorize the release of mortgage information. We had to wait until they published (we are not a notice of default state) the foreclosure, before the bank could tell us the balance of the loan and the amount they were willing to accept as payment in full.

We knew a short sale was not appropriate, since we would simply be paying off a loan on a property we did not own.

So once we knew how much the bank was willing to accept, we bought the note and mortgage at the discount.
We had to use all-cash since we were buying the mortgage and not the property.

Even though we only paid $100,000 for the mortgage, we bought the entire debt of $150,000, so our opening bid at the foreclosure sale (as the new lender) was $150,000 and there were no other bidders.

We now owned the property and could borrow against it.

I don’t know if any of this information will help in your situation.

Thanks, all of the information is great “guys”. Can’t get enough. :eek