Worried...

[nvme]

In late January, we put in an offer on our first home which was accepted shortly after. The home is an estate sale with 9 heirs, yes 9, and all sellers agreeed on the price, and signed the contract. Needless to say the countersigned contract was submitted in early April and got our clear to close from the bank mid April. We thought we were going to close first week of May as stated in the contract. Low and behold, our attorney is now stating we can't close because there are issues with the title and the heirs have to go to court. There are no liens or judgements on the title but is in probate (?). Our rate expires first week of June, my lease expires July 1, and we are still waiting for an update on the seller's side. Does anyone know the turn around time for this? We have an FHA and are concerned that we may lose the house or now have to pay the pmi for the life of the loan because of the delay on the seller's side. The case number was assigned to us in February and were assured that we wouldn't be affected by the new changes. Hope someone can help explain the probate process and anticipated wait time.

[webhopper]

The estate has to go through probate before things can be sold...  It probably has to do more with the estate and the will, rather than the title.

[nvme]

What is probate? I googled but the answers vary so much that I'm lost! Does that mean a judge has to decide the allocation of assets although all sellers agree?

[AppleJacks]

Yes but don't let probate scare you.  If all 9 agreed the judge will sign off on it and decide, per the will (or state law if no will exists) how the money is divided up and to whom it's going.  That's not your concern and I'm sure you don't care who gets the proceeds as long as you get the home.  If they are all in agreement about the sale of the home I wouldn't worry so much about probate itself (unless there is something in the will stating they can't sell the home, which I HIGHLY doubt), you should just be concerned with them getting in front of a probate Judge ASAP.  If you live in a rural area it's more likely.  A urban area it could take some time. 

You can call the local county courthouse and see if it's on the docket.  Or, ask your realtor to find out for you.  He/She should be able to speak to them or their realtor and get the date they meet with the probate judge.

[webhopper]

If you have a deadline in order to have to move out of your existing home, you may ask if you can sign a temporary lease until they go through probate...  that way they don't loose the sale, and you don't have to jump ship

[mygoal750]

if closing is delayed due to the probate, I would ask your agent if she can get the sellers to pay the difference on the PMI.  If you close after the deadline, and have to pay PMI for life of loan, and it's due to sellers issues, I would ask them for the difference.  That would get their attention, and maybe they can have the estate attorney move their file to the top of the pile.  Probate can take a long time to process through.