questions & answers

Question: In March 2009 the deceased in probate case obtained $1000.00 and signed Promissory Note with a Deed of Trust on property he owned. He last payment made was in March 2012. He dies in August 2014 with Note and DOT still on property. Owner of the Prom Note and DOT was notified thru informal probate to file a claim but never did. I have filed the Deed of Distribution. So what do I do about this Prom Note and DOT ? And how does this affect the filing of closing statement for probate case?

Answer:  A deed of trust secures an interest in the property.  Until a deed of trust is released by paying off the debt, the holder has what amounts to a lien on the property.  If payments are not made, the holder can foreclose on the property through a trustee's sale.  Your notice to creditors will not affect a deed of trust.  The estate cannot distribute a clear title until the deed of trust is taken care of.  What you do depends on how much of the debt remains and the value of the property.  You may want to discuss this with a lawyer.  There are 3 programs in Arizona that you can use to get some inexpensive legal advice and guidance.  One is the Modest Means Program.  If you are financially qualified for the program, for a $75 fee, Modest Means  offers a one hour consult with an attorney.  If you need additional help and the attorney agrees to take your case, the fee charged will not exceed $75 per hour.  The telephone number is (866)637-5341.  Both the Maricopa and Pima County Bar Associations have lawyer referral programs that offer a 30 minute consult with an experienced attorney.  Maricopa County's Lawyer Referral Service offers a 30 minute consult for a fee of $40.  The telephone number is (602) 257-4434.  Pima County's Lawyer Referral Service offers a 30 minute consultation for a fee of $35.  The telephone number is (520) 623-4625.