What happens if no one files (probate)?

[Heat4212]

What is the name of your state (only U.S. law)? IN

My dad is terminally ill and we are trying to get his affairs in order. His parents (my grandparents) both passed away in 2011. My aunt (Dad's sister) was living with them at the time. My aunt has passed out some of their possessions and had a paralegal friend trying to help them get probate paperwork filed. After several months she withdrew her help because my dad and my aunt kept disagreeing on how things should proceed.

My aunt cannot afford to hire an attorney. She also can't pay the mortgage now that my grandparents are gone. My dad is furious that she is living there but doing nothing to settle the estate. Also my grandparents have about $2,500 in a brokerage account that no one can access.

I just don't think it's worth wading in at this point. The house's value took a dive when the market tanked and now it is probably a year in default. It will probably foreclose. The brokerage account won't even cover court and attorney's fees. So my question is, what happens if we do nothing? If none of the heirs ever file probate, will the house just get repossessed and then it's over? Or are there repercussions I am not aware of?

 

[LdiJ]

What is the name of your state (only U.S. law)? IN

My dad is terminally ill and we are trying to get his affairs in order. His parents (my grandparents) both passed away in 2011. My aunt (Dad's sister) was living with them at the time. My aunt has passed out some of their possessions and had a paralegal friend trying to help them get probate paperwork filed. After several months she withdrew her help because my dad and my aunt kept disagreeing on how things should proceed.

My aunt cannot afford to hire an attorney. She also can't pay the mortgage now that my grandparents are gone. My dad is furious that she is living there but doing nothing to settle the estate. Also my grandparents have about $2,500 in a brokerage account that no one can access.

I just don't think it's worth wading in at this point. The house's value took a dive when the market tanked and now it is probably a year in default. It will probably foreclose. The brokerage account won't even cover court and attorney's fees. So my question is, what happens if we do nothing? If none of the heirs ever file probate, will the house just get repossessed and then it's over? Or are there repercussions I am not aware of?

The house will just get repossessed. There would be no other ramifications. Neither you nor your father (nor your aunt for that matter) are REQUIRED to claim any of your grandparent's estate.

 

[Heat4212]

Well that's simple enough. Thanks for the quick answer!

 

[tranquility]

Depending on the facts, they also may have a right to collect against other estate assets like the brokerage account if there is a deficiency after the sale of the house.

 

[Heat4212]

Depending on the facts, they also may have a right to collect against other estate assets like the brokerage account if there is a deficiency after the sale of the house.

That makes sense too. I wonder if the creditors will be forced to go through probate proceedings to foreclose the house or cash out the brokerage account. (How do you even use probate properly in a sentence? Is it a verb? Noun? Adjective?)

Hey, that brings up another concern. My grandmother gave her mobile home to my mother when she bought the house. My mother sat on the "bill of sale" until after my grandmother died. I wonder if the bank would go after that asset since ownership transferred after my grandparents passed away or if the bill of sale is protection enough.

I am also curious to see how long this all takes. Are there extra steps involved to foreclose on the property of deceased persons? It's been a very long time since any payments have been made on the mortgage, but the lender is still paying the taxes and has not begun foreclosure proceedings.

I do know one thing... I am making my parents write a will! This whole thing has been such a mess all for a pittance of assets! It's so not worth it....

 

[tranquility]

I wonder if the creditors will be forced to go through probate proceedings to foreclose the house or cash out the brokerage account. (How do you even use probate properly in a sentence? Is it a verb? Noun? Adjective?)

Not to do a foreclosure, but to collect against other assets. Probate can be all of those depending on how it is used.

Hey, that brings up another concern. My grandmother gave her mobile home to my mother when she bought the house. My mother sat on the "bill of sale" until after my grandmother died. I wonder if the bank would go after that asset since ownership transferred after my grandparents passed away or if the bill of sale is protection enough.

Aren't mobile homes deeded? If title was not transferred with a signed deed, I don't think a bill of sale would work to protect the asset. If the deed is simply not registered/recorded, that may provide some protection.

I am also curious to see how long this all takes. Are there extra steps involved to foreclose on the property of deceased persons? It's been a very long time since any payments have been made on the mortgage, but the lender is still paying the taxes and has not begun foreclosure proceedings.

They'd probably have to join "parties in interest". But, it could continue without probate opening.

 

[Heat4212]

Aren't mobile homes deeded? If title was not transferred with a signed deed, I don't think a bill of sale would work to protect the asset. If the deed is simply not registered/recorded, that may provide some protection.
.

The mobile home is in IL and it is treated just like a car. My grandma signed the title over to my mom in 2005 and wrote up a Bill of Sale. My mom waited until 2011 to take it to the DMV. She said she had no problems getting the new title (which surprised me... when do you ever go to the DMV and not come out with a headache?!)

Thanks again for your feedback on everything else!