Legal Question in Wills and Trusts in Florida
SBA Loan payments billed to deceased estate
My mother died recently owing SBA $160,000 for a new home she was having built in Florida. (previous home lost in hurricane). She had only made a few payments on the loan before she died. The house is almost complete however, the contractor has stopped work on it. She left behind $3000 in medical bills which I have been trying to pay. SBA sent my siblings and I a letter stating that after the home went through probate we could assume the loan. Since the home has no equity and we don't live in the area we ask a lawyer what we should do. He said that we should let SBA foreclose on the home and walk away from it since its in an area where the home values are around 50,000-75,000, it's in a flood zone and the housing market is not good right now.
I would like to know if my sibling are responsible for this loan? And for property taxes to the city? Should I try to assume the loan since it has a low montly payment? Am I responsible for paying her medical bills? I was not named the executor and mom had no will. She just wanted me to take care of things.
2 Answers from Attorneys
Re: SBA Loan payments billed to deceased estate
The advice is correct. You are not responsible, her estate, if any, may be.
Re: SBA Loan payments billed to deceased estate
Why would you want to assume responsibility for a $160K loan on property that may be worth no more than $50K?
The Forida attorney who advised allowing this property to go to foreclosure would appear to have dispensed sound advice on this issue.
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