Odd situation, really at a loss

Status
Not open for further replies.

JohnSmith555333

New Member
Jurisdiction
Florida
Okay, so I don't know where else to turn regarding this situation and I'm hoping I can get some good input here.

My mother passed away in December of 2019, my father was already gone. Their house in Florida was a reverse mortgage and the sale price was far less than the 'payoff' amount with the reverse-mortgage company. So when she passed the family decided there was no point in trying to sell it. I am the executor of the estate so all correspondence goes through me. I contacted the reverse-mortgage company to let them know she had passed, provided the death certificate and all of the information they required. They asked me if I wanted to 1) let it go into a non-recourse 'traditional foreclosure' where it goes back to the bank with NO financial responsibility on my part, OR 2) a "deed in lieu" where we (the family) would still be responsible for the upkeep/payments on the home. We chose option 1, traditional foreclosure. This was all confirmed via email with the reverse-mortgage company, we'll call them "NCC" from here on out. I tell NCC "let it go into foreclosure" and that was that.

The community this home was in has monthly dues and taxes associated with it. All of those were paid up in-full to the time of her death in Dec 2019, I personally made sure everything was paid for. Beyond that point in time nothing was paid because, presumably, the house was in foreclosure and it was the responsibility of the lien holder, which is NCC. In the 19 months since that point I have gotten bills from the community district directed to "The Estate of Mothers Name" looking for about $2k worth of back payments that have accumulated from Dec 2019 until present day. They recently got a lawyer involved and are placing a lien against the property deed which I just today found out is still in my mother's name! Why? When Covid hit in March of 2020 there was a moratorium placed on all foreclosures countrywide which was just revealed to me today by NCC. They said it was lifted on July 31st, two days ago, and that they "could not give any estimate on when the foreclosure process will be complete." So even though NCC told me the home was in foreclosure 19 months ago, it actually wasn't and the district is trying to collect on dues on a home that was supposed to be in foreclosure 19 months ago.

I have no connection whatsoever to this home, and nothing is in probate, I'm not on the deed and the home wasn't part of any will, living or dead. I'm just trying to figure out what exposures I personally have if "The Estate of Mothers Name" still exists and I'm still attached to it because I'm the executor? To be clear, nothing else is due on the home, there's no debt, no liens, there's nothing IRS-related... it's just that the district/community the home is located in wants back-payment on dues. I have told their lawyer who to contact (NCC) and there's even a HUD case# associated with it. I have a paper trail of all communication related to this. The district seems to be ignoring all of that and continually going after "The Estate of Mothers Name" which ultimately lands in my lap.

1) I need to know what kind of personal exposure I have with this. What if someone were to move into the place, like squatters or someone got hurt on the property!? Am I suddenly liable for anything that happens to the home because they could sue "The Estate of Mothers Name" which ultimately lands in my lap? I live 6 states away so this isn't something I can check-in on myself.

2) Am I responsible for paying the $2k of outstanding dues because NCC hasn't finalized the foreclosure process 19 months after they said they would? Lastly, IF I were to just pay the $2k out of my pocket, does that open me up to even more financial responsibility of this property in the future prior to it going into full foreclosure with NCC?

Thank you in advance for any insight anyone might have, I'm not sure where to go next with this.

JS
 
Beyond that point in time nothing was paid because, presumably, the house was in foreclosure and it was the responsibility of the lien holder,

Your mistake. The lienholder has a security interest in the property and does not own it. The owner, followed by the owner's estate, has a contractual obligation to continue paying the HOA dues and a statutory obligation to continue paying the taxes until ownership actually changes.

I have no connection whatsoever to this home, and nothing is in probate, I'm not on the deed and the home wasn't part of any will, living or dead. I'm just trying to figure out what exposures I personally have if "The Estate of Mothers Name" still exists and I'm still attached to it because I'm the executor?

It's the estate's debt to the extent that the estate has the funds with which to pay creditors. You could be personally responsible as executor if you mishandled the estate's assets by prematurely distributing them to heirs without first addressing all the estate's debts.

What if someone were to move into the place, like squatters or someone got hurt on the property!?

Should have kept insurance on the property until you confirmed that ownership had actually transferred. Read your own homeowners policy to see if the liability coverage covers you if you get named individually in a lawsuit.

Am I responsible for paying the $2k of outstanding dues because NCC hasn't finalized the foreclosure process 19 months after they said they would?

Again, you could be personally responsible as executor if you mishandled the estate's assets by prematurely distributing them to heirs without first addressing all the estate's debts.

Lastly, IF I were to just pay the $2k out of my pocket, does that open me up to even more financial responsibility of this property in the future prior to it going into full foreclosure with NCC?

Same answer.

Did you prematurely distribute the estate's assets without addressing the debt of the estate?
 
Your mistake. The lienholder has a security interest in the property and does not own it. The owner, followed by the owner's estate, has a contractual obligation to continue paying the HOA dues and a statutory obligation to continue paying the taxes until ownership actually changes.

Answer: WRONG. The lienholder (Novad Management) told me in writing that I was not responsible for the HOA dues or anything else related to the property.

It's the estate's debt to the extent that the estate has the funds with which to pay creditors. You could be personally responsible as executor if you mishandled the estate's assets by prematurely distributing them to heirs without first addressing all the estate's debts.

Answer: My lawyer said I am NOT personally responsible for anything since there was no "estate" to speak of. I used what was left in my mother's bank account to care for her during her last few months of life while she was dying of stage 4 cancer. There was nothing 'distributed' to anyone except a couple pieces of furniture and artwork that held sentimental value, not worth anything monetarily.

Should have kept insurance on the property until you confirmed that ownership had actually transferred. Read your own homeowners policy to see if the liability coverage covers you if you get named individually in a lawsuit.

Answer: Again, this was the responsibility of Novad, not me. They put the house into a "pre-foreclosure" state and changed the locks, secured the property, etc. Also, my homeowners policy DOES cover me in a lawsuit, but even they (State Farm) said I have nothing to worry about.

Again, you could be personally responsible as executor if you mishandled the estate's assets by prematurely distributing them to heirs without first addressing all the estate's debts.

Answer: Same answer, as above.

Same answer.

Did you prematurely distribute the estate's assets without addressing the debt of the estate?

Answer: See above answer. But thanks for making me feel like a complete worthless loser who did everything wrong that could possibly be done wrong even though I'm NOT at fault here. I spent a year watching my mother deteriorate while, at times, I paid for her care out of my own pocket while trying to juggle everything else in my life. I really appreciate your scathing "insight" on this situation when you clearly have no idea what you're talking about given the facts of the matter. I have since contacted the HOA and they said to me "Yeah, it's just a waiting game at this point between whether we take possession of the house or Novad takes possession. Either way, you're not responsible for anything. You're just a point of contact."

I guess I'm done asking for advice on this site if this is the kind of accusatory reply I'm going to get.

Good day sir.
 
I guess I'm done asking for advice on this site if this is the kind of accusatory reply I'm going to get.

No worries, I'll simply close this thread to avoid additional hurt feelings on your part.

I pray your mother overcomes her medical maladies.
 
Status
Not open for further replies.
Back
Top