Preforeclosure-Probate-Shortsale....ALL in one!!!
I have a property in the pipeline where the owner is deceased, and property is in preforeclosure. No equity in the home. Would the foreclosing lender allow me to pay the PR of the estate in order to go through with a short sale?
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I've closed hundreds of short sales, including several in probate, and I have never seen this to be an allowed fee. There are very strict limits on what fees lenders will allow to be paid out of shorts, a PR fee would not be one of them. A real estate agent can get paid 6% in most assuming a listed property, never a PR.
The only exception to this is HUD reverse mortgage short sales. There is no arms length agreement, and during certain time periods, the lender will allow up to $5k to go out towards probate costs, as well as $7500 is relocation assistance. However this rule came from the Biden years, so if the new administration has not already shut it down, surely they will soon.