My question involves estate proceedings in the state of: Colorado
My mother passed away in May and had a reverse mortgage on her condo. It is upside down so I am working with the bank to do a deed in lieu of foreclosure. I am executor of her estate and have probated the will. Is her estate responsible to pay her HOA fees every month? What happens when her bank account is empty? Also I was just notifiied by her Association that their may be water damage in her condo. If there is damage to the condo can I just have the bank foreclose instead? She has also just received a small settlement from a car accident she was involved in months before she passed away. They made the check out to myself and her estate. Am I able to divided this between my brother and myself?
Source: expertlaw [link removed]
asked Jan 08 '12 at 03:17
Why would foreclosure be on the table? If this is a reverse mortgage the heirs should have the option of deeding the property to the lender to satisfy the mortgage balance.
The HOA is a creditor of the estate, and is thus entitled to proper notice of the estate and the deadline for filing a claim against the estate.
If the estate has insufficient assets to pay all of the valid debts that creditors assert against the estate, the estate won't be able to fully compensate the creditors.
The accident settlement is an asset of the estate; presumably you're on the check as administrator. The estate's assets are used to pay debts (from creditors who file timely, valid claims), court costs and funeral expenses, with the remaining assets distributed to the heirs.
answered Jan 08 '12 at 03:17