Maryland | Legal Malpractice
Legal Question
Foreclosure in Estate Case
I am representing a PR probating her late mother's estate. Before the mother's death, clients and mother took out a reverse mortgage on the property. After mother died, client did not opt to pay on the reverse mortgage. Immediately after opening the estate and receiving letters of administration, I contacted the lender and faxed over the letters, thereby staving off foreclosure for 6 months. Before the end of the posting period (creditors and interested persons), siblings of my client filed a petition to caveat. We could not list the home for sale until the matter was resolved. This took us past the 6 month foreclosure stall. Clients did not request an extension, nor ask me to request one. It would not have mattered anyway: HUD does not allow extensions for homes that are not listed, which we could not have done until the end of the caveat proceedings. Home is currently in foreclosure proceedings. My suggestion to clients was to speak with another lender about a re-fi to payoff the reverse mortgage, save the home, and allow them to sell on their own conditions. Regarding any liability on my part, my gut feeling is that the clients are responsible for dealing with debts and creditors. Any thoughts? Thanks!
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