Legal Question in Wills and Trusts in Florida

SBA Loan of deceased being billed to her estate

Hi,

My Mother died recently. She was having a home built through a loan from SBA. (previous home lost during a Hurricane) The home is nearly complete, however the contractor has stopped working on it. SBA sent letters saying after the home went through probate we (my siblings and I) could assume the loan. Now they are sending overdue payments to her estate. Mom died without a will, I have not been named the executor and I really do not have the money for all the legal things that may arise. I have been trying to pay her medical bills to keep creditors from her estate. She owed about $3,000 in medical and utility bills. She has no other assets except a $1200 car. A lawyer advise my siblings and I to let the home be foreclosed on by SBA since it is in an area where the homes average $50,000 and this one is worth 160,000 and is in a flood zone surrounded by standing water. The monthly payment is pretty low so I find it hard to walk away from it. I don't know what to do. Should I pay her bills off? Should I try to assume the SBA loan? I'm not sure it's a good idea to do it. Will we owe taxes on it? She owned the land. If we want to just walk a way from it can we? What should or can be done?


Asked on 4/01/08, 5:27 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: SBA Loan of deceased being billed to her estate

You have given no indication as to the amount of the outstanding SBA loan, without which it would be difficut to make any assessment of your situation and possible recommendation.

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Answered on 4/01/08, 10:16 pm


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