Anyone ever deal with FHA foreclosure during an estate probate?

My father recently passed. He has an FHA loan on his house. The loan is for considerably more than the house is worth in its current state. Will FHA go after the estate or try to keep the probate process open? What should I expect. I am the executor and only heir. Thanks

Sorry for your loss. That is a tough situation to deal with. FHA would not go after the estate or delay the probate process, but there indirect actions could effect things.
If you really are upside down in the loan I would try to do a short sale vs foreclosure. A short sale would stall or put off the foreclosure process. I would contact a local experienced Realtor ( or 2 ) and ask their advise on value and the situation. The market is getting super hot in metro Atl and much of Ga. and the property value could very well be higher than you realize. Call your Dad's lender and explain the situation. They may offer some relief. Short sales were very common in our market down turn but I hardly see them now, and I usually look at 100's of listings online daily. So they may be more attentive to your plight. Be concerned about the diff between what the loan is for and the sales price if you do a short sale. This difference between sales price and payoff is what the Estate could have a tax liability for.
Conversely a foreclosure proceeding would not effect your credit since its not your name on the loan. Best of luck and let us know what happens.

Olden another thought would be to reach out to an experienced RE Atty for their advice. I should have mentioned I can probably get you some legal advice for free if you don’t know anybody down your way. PM me if I can help but would likely need more details.

If your name, nor any other besides your father's is not on the loan, simply walk away. Short sales are driven by the bank and as a realtor for 20 years in Tn and Ky, I absolutely hated working with them.

model88_308 said:

If your name, nor any other besides your father's is not on the loan, simply walk away. Short sales are driven by the bank and as a realtor for 20 years in Tn and Ky, I absolutely hated working with them.

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It's been awhile,but when my Mom passed back in 1973,we did just this, the loan note was in my mom's name only ( we walked away,never made another payment, mailed them the keys**) -- had to finish raising my three younger brothers -- never heard a word or got a letter from the FHA ??

FHA typically doesn't go after an estate, but they can. Get a lawyer, file for probate, give them notice and unless they file a timely claim in the probate court against the estate, you are good to go.