Crooked Executor

[woody05]

What is the name of your state? Illinois

I am the only beneficiary to my father's modest estate. The executor is a female friend of my fathers who I despise and don't trust. Dad owned a small house and owed $65,000 on the mortgage. Executor says she got an appraisal on the house of $58,000 and that she is going to buy it. Can she do this without getting more than one appraisal or without putting it on the market for sale to see what it might sell for? Your thoughts would be appreciated.

 

[dmode101]

There is a legal term for this sort of thing: self-dealing. Tell her you object to the sale and if she is still going to go ahead then consider petitioning the court to stop the sale. You might also petition to have her removed as executor.

 

[Dandy Don]

I don't think you have very much to be concerned about here. You have not mentioned what the house was actually worth to your father or what he purchased it for or how much he had paid off on the house before the remaining $65,000 balance was left.

So what if she got an appraisal? The mortgage company is undoubtedly going to get their own appraisal which may be higher. The mortgage company, NOT EXECUTOR, will set the sale price for the home and executor may be in for a rude surprise. They will also factor in whether significant depreciation has occurred, so there is no way to know for sure whether the $58,000 will be the actual sale price or not. Talk to the mortgage company about this and I think you will be reassured.

The house is not a factor for probate anyway since it will not go through probate since dad didn't own it--the mortgage company owns it.

DANDY DON IN OKLAHOMA ([email protected])

 

[anteater]

The house is not a factor for probate anyway since it will not go through probate since dad didn't own it--the mortgage company owns it.

What do you mean that the house will not go through probate???? The mortgage company owns it????

 

[Dandy Don]

Of course they do, if the debt had not been paid in full! But you still need to discuss this with them--your dad may have had enough equity in the home for the estate to possibly share in a portion of the profits if the home is eventually sold.

DANDY DON IN OKLAHOMA ([email protected])

 

[frustratedtwo]

I am in a similar situation. I called a lawyer (In MI) and asked for advice. He said this type of situation is called "self-dealing". Pretty much meaning that they are trying to benefit themselves. You can get a lawyer and file a claim against the estate. He also said that the sale has to pass through the courts in order to sell and seeing her name and the price as the buyer, they will definitely raise a brow to it. I'd call a lawyer and see what they say. But mostly, it doesn't make sense that anyone would buy it for less than what is owed on the mortgage. If anything, she'd get stuck paying the difference if it even happened. Good luck.