Los Angeles

[Andiamo53]

This is a pretty interesting house in Mt. Washington (albeit missing a few bathroom fixtures). What I don't get is that it's both a short sale AND a probate sale subject to court confirmation. How does THAT work--sounds very complicated for a buyer--and why would the seller (whoever that is) even bother? Who cares about the credit rating of a dead person?

http://www.redfin.com/CA/Los-Angeles/4938-Glenalbyn-Dr-90065/home/7076256

[site2thrive]

This house has been on the market since 04/20/2008 when it was listed for $1,298,000.

You can still find the listing online with total different photographs. 

Why didn't they just lower the price to find a buyer three years ago???

[Adam-la]

Maybe they were busy with life and death issues that superseded the need to sell the house.  It sounds like there is a death involved with this situation...

[Adam-la]

To the question about the credit, I suspect there are probably more assets in the estate that might get tied up and be required to pay back an underwater house. 

If you were one of the trustees your obligation is to maximize the benefits to the people and institutions designated by the deceased. 

[WannaBeRational]

Adam, for the living the primary difference between a short sale and a foreclosure is the hit to your credit rating is somewhat less for a short sale.  For the deceased, there is no difference.  Why wouldn't the trustees just let the house be foreclosed on and essentially ignore that "asset" in this case?  The only way I can imagine that not working is if somehow the mortgage was a recourse loan, but that basically never happens in California (unless the deceased took out a huge 2nd that is now more than the value of the house).

[Adam-la]

The only legitimate reason I can imagine a short sale occuring with a probate property is that they are trying to stick the bank with some of the losses.  Perhaps others can chime in with alternate theories. 

[not_ally]

Weird – there seems to be no reason for the decedent’s estate to go along with this; California is a non-recourse state, so the estate cannot be held liable for any shortfall in the mortgage upon foreclosure. Maybe there’s some other reason that it could be categorized as an unliquidated liability which could potentially postpone settlement of probate? Not a trusts and estates person, so have no idea how the foreclosure-probate laws work in tandem.

I don't even like contemporary architecture that much, but that is a great looking house.

[Andiamo53]

Hey not_ally--good to see you back here. I wonder if this is maybe a conservatorship and not a dead person's estate we are talking about. Are conservator sales subject to probate?

[Nanomug]

Maybe they want to settle the estate sooner rather than later.  It could take the lender years to foreclose.

[not_ally]

Hey Andiamo, I didn't even think of a conservatorship.  But I bet you're right, on blockshopper the owner shows up as a trust and if the equitable owner is still alive, maintaining his/her credit makes sense.  I ran the address through google and came across this – ignore the purple prose but check out the pictures.  The place is pretty cool looking.  The original pictures really don’t do it justice.

http://takesunset.idxco.com/idx/5184/photoGallery.php?idxID=240&listingID=11559543