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Hey there. I don't expect anyone to have advice or knowledge but if you do that would be great.
Feb 2014- Mom passed away. She owned a condo which was maybe break even: value vs. the mortgage, plus she had some credit card debt and probably some medical from when she was in the hospital. I am listed in the will as sole heir (have a sister but she specifically wasn't left anything) and the personal representative. Due to the financial situation and she didn't have any money left, I did not do probate or try to get the condo or do anything. Notified everyone that there was no money in the estate.
Finally after more than 2 years, the property went to auction, which I was getting paperwork about from the trustee, and the HOA, who wanted the monthly fees/interest/legal paid.... I was like, Finally! and felt after that, I could forget about it and move on.
Right after auction, I started getting calls and letters from asset recovery firms, that there was money owed to me from my Mom's estate. Then I received confirmation from the trustee that there was a big overage from what the bank was owed. The money was being deposited into the county clerk's office.
I was shocked that the condo sold for so much more (of course, real estate is way up from 2 years ago, duh I say to myself) but also the people were bidding on a property that they couldn't see the inside of (since all blinds were closed. It could have been trashed- but it was in nice condition.)
I contacted the attorney, who also received all the paperwork. He is going to file a motion for me to get the extra funds. However, the HOA lawyers also filed a motion for all the back fees, which they are due and would be paid first. That covers over half of the overage.
Anyway, I feel like I am the first person in the universe to go through this situation... my lawyer with 30 years exp has not dealt with this before, and there's nothing I could find on the internet (if the homeowner was still alive, yes, but not when they are deceased and there's a surplus.) I even posted on a forum where lawyers can provide their opinions, and no one did...
The thing I'm wondering about is: she had credit card debt. I knew of it because I was paying her bills when she was in the hospital. Since there was no probate, creditors have 2 years after someone dies in which to file claim. I never heard anything from the bank or a debt collector in that time (as the personal representative), so can they try to take the excess funds if I receive them? If so, I don't think it's worth it for me to try to get the money, as the debt is most of what would be left over... or after 2 years they just write it off? (The bank account and mortgage was through the same credit union.) Or sell it to a collection agency- but if so, wouldn't they be contacting me by now? The auction happened in June and since the recovery firms found me, the collectors could too.
If they can legally collect, that's fine. But I don't want to spend my own time and money on legal fees to collect money and then give it away.
I would love if someone here has been through something like this and let me know what happened.
Feb 2014- Mom passed away. She owned a condo which was maybe break even: value vs. the mortgage, plus she had some credit card debt and probably some medical from when she was in the hospital. I am listed in the will as sole heir (have a sister but she specifically wasn't left anything) and the personal representative. Due to the financial situation and she didn't have any money left, I did not do probate or try to get the condo or do anything. Notified everyone that there was no money in the estate.
Finally after more than 2 years, the property went to auction, which I was getting paperwork about from the trustee, and the HOA, who wanted the monthly fees/interest/legal paid.... I was like, Finally! and felt after that, I could forget about it and move on.
Right after auction, I started getting calls and letters from asset recovery firms, that there was money owed to me from my Mom's estate. Then I received confirmation from the trustee that there was a big overage from what the bank was owed. The money was being deposited into the county clerk's office.
I was shocked that the condo sold for so much more (of course, real estate is way up from 2 years ago, duh I say to myself) but also the people were bidding on a property that they couldn't see the inside of (since all blinds were closed. It could have been trashed- but it was in nice condition.)
I contacted the attorney, who also received all the paperwork. He is going to file a motion for me to get the extra funds. However, the HOA lawyers also filed a motion for all the back fees, which they are due and would be paid first. That covers over half of the overage.
Anyway, I feel like I am the first person in the universe to go through this situation... my lawyer with 30 years exp has not dealt with this before, and there's nothing I could find on the internet (if the homeowner was still alive, yes, but not when they are deceased and there's a surplus.) I even posted on a forum where lawyers can provide their opinions, and no one did...
The thing I'm wondering about is: she had credit card debt. I knew of it because I was paying her bills when she was in the hospital. Since there was no probate, creditors have 2 years after someone dies in which to file claim. I never heard anything from the bank or a debt collector in that time (as the personal representative), so can they try to take the excess funds if I receive them? If so, I don't think it's worth it for me to try to get the money, as the debt is most of what would be left over... or after 2 years they just write it off? (The bank account and mortgage was through the same credit union.) Or sell it to a collection agency- but if so, wouldn't they be contacting me by now? The auction happened in June and since the recovery firms found me, the collectors could too.
If they can legally collect, that's fine. But I don't want to spend my own time and money on legal fees to collect money and then give it away.
I would love if someone here has been through something like this and let me know what happened.
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