Estate Auction---Real Estate

What is the name of your state? Illinois

If real estate, including a house, is auctioned and the highest bid does not cover the mortgage on the real estate, can the house and property simply be turned over to the bank holding the mortgage rather than taking additional funds from the estate to pay the balance of the mortgage?

What benefit to the heirs would there be in doing that? Are you saying that the estate just wants to walk away from whatever equity they might have in the home and just give up everything? Yes, it might be possible to do that and sign a quitclaim deed, but it might be better to wait and see how the bank is going to handle things from now on--maybe instead of auctioning it they should put it up for sale through listing it with a real estate agent which might result in a better class or quality of realistic offers.

The big worry in this case is that the bank administrator will sell the house at auction for less than it is worth to a person or persons that he is affiliated with....then take monies from the estate to pay off the mortage at another bank.

Of course you always hear stories about certain people but we are hearing way too many about this administrator. Naturally, no one says anything when you are going through the process of appointing one. When you ask those who have been "taken" about the stories they say they are true but they didn't want to cause any trouble or it was more trouble than it was worth to go to court over his improprieties. This is a small town, 13000, and everyone seems to have gone to school with everyone else and are friends with each other...lawyers, bankers, real estate brokers, antique dealers.

The administrator's brother told us he wouldn't trust him with anything.

Of course, this thing is turning into a real mess, but unlike others, we are keeping good records and are prepared to go to civil or criminal court if he screws up. In addition, we will be going to the national headquarters of his bank...no sense dealing with the local branch.

Thanks

Have you found out from the administrator what the minimum price/amount of bid is going to be set at before actual bidding begins? Usually that is arranged before the auction even begins. Now is a good time to find out so you can consider urging him to raise it upwards if necessary. Has an official appraisal been made to find out what a reasonable amount would be for the selling price?