Detailed Answer — Step‑by‑step process under Missouri procedures

Below is a clear, practical walkthrough of the steps people typically follow when the law or a court requires approval before selling real property and using proceeds to pay a mortgage in Missouri. Many common situations trigger court involvement: selling property that belongs to a decedent’s estate, selling property for a minor or an incapacitated person, or selling property when co‑owners disagree. The exact steps and paperwork vary by situation, but the general process follows the steps below.

1. Identify the legal reason a court must approve the sale

• Probate estate: If the house belongs to a decedent’s estate, the personal representative (executor or administrator) often needs court authority to sell real estate to pay debts and distribute proceeds.
• Guardianship or conservatorship: If a minor or an adult under guardianship/ conservatorship owns the house, the guardian/ conservator must obtain court permission to sell.
• Joint ownership disputes or partition actions: A sale may require a court order when co‑owners cannot agree.

2. Obtain standing authority (letters, appointment, or petition)

You must first have legal authority recognized by the court:

• Probate: Be formally appointed as personal representative and have letters testamentary or letters of administration issued by the probate court.
• Guardianship/Conservatorship: Be appointed guardian or conservator of the estate and hold the court’s letters of appointment.
• If you are not yet appointed, file the appropriate petition in the county probate or circuit court to be appointed and authorized to act.

3. Prepare and file a petition for sale with the court

The petition asks the court to authorize sale of the property and to approve using the sale proceeds to pay off the mortgage. Typical contents:

• Identify the property and its legal description.
• Explain why the sale is necessary or in the best interest of the estate/ward (e.g., to pay debts, taxes, or to avoid upkeep costs).
• Disclose the mortgage(s) and outstanding balance(s).
• Describe proposed sale terms (listing price or sale contract if under contract).
• Identify interested persons and beneficiaries, and state the notice you will provide to them.

4. Provide required notices and obtain any valuations

The court typically requires notice to creditors, heirs, beneficiaries, and other interested parties. The court may also require appraisal or a market valuation to show the sale is fair and necessary.

5. Attend the court hearing and obtain an order

The court will schedule a hearing if objections exist or if the court’s local rules require it. If the judge approves the petition, the court issues an order authorizing the sale and specifying any conditions (for example, notice, minimum price, or requirement to bring proceeds into the estate account).

6. Complete the sale and handle payoff of the mortgage at closing

At closing, the title company or closing attorney collects sale proceeds, pays off the mortgage from the proceeds (subject to the court order), pays closing costs, and distributes any remaining proceeds according to the court order or probate instructions. You must typically file a closing statement and proof of payoff with the court.

7. Report to the court and close out the matter

After sale and payoff, file a final accounting or report that shows the sale price, mortgage payoff, distribution of funds, and any remaining items. The court will approve the accounting and allow you to distribute funds or close the estate/guardianship accounting as appropriate.

Special issues you may face

• Short sale: If the mortgage exceeds the sale price, the lender must agree to accept less (a short sale). Courts will want evidence of the lender’s consent before approving a sale that won’t fully satisfy a mortgage.
• Sale subject to mortgage vs. payoff: The court can authorize sale subject to an existing mortgage (buyer assumes loan or lender remains in place) or authorize payoff from the proceeds. Mortgage payoff is common at conventional closings.
• Emergency or expedited sales: Courts may allow expedited authority if preserving value requires quick sale, but you’ll still need to justify urgency and later account to the court.
• Costs and bond: The court may require a bond, appraisal, or listing for a set period to show you marketed the property fairly.

Typical timeline and costs

Timeline: Getting appointment/authority (if not already appointed) can take weeks to months. Filing a petition, giving notice, and getting a hearing can add several weeks. Closing follows once the court order issues.

Costs: Court filing fees, appraisal fees, publication and notice costs, attorney fees, bond premiums (if required), and normal closing costs. Expect the process to add some time and expense vs. a private sale by a competent owner.

Where to find Missouri court rules and statutes

Missouri’s official statute and court resources are available from the Missouri Revisor of Statutes and the Missouri Courts website. For forms, local rules, and court contact information, check your county’s probate division. A searchable resource for Missouri statutes is the official Revisor of Statutes: https://revisor.mo.gov/main/Home.aspx.

When you might NOT need court approval

• If you are the sole owner and competent, you can sell without court permission.
• If you hold power of attorney that expressly authorizes sale and a third party will accept the POA, you may not need a court order (but banks and title companies sometimes require a court‑issued document for large transactions).
• When a mortgage co‑owner consents and no guardianship/probate issues exist, no court order is usually required.

When to hire a lawyer

Hire a Missouri attorney if any of the following apply:

• There are creditors or an insolvent estate.
• Beneficiaries or heirs object to the sale.
• The sale will be a short sale or otherwise fail to fully pay the mortgage.
• The property belongs to a minor or someone under guardianship/conservatorship.
• You want to be sure you comply with local court practice and protect yourself from future liability.

Helpful Hints

• Start by confirming your legal authority: find the court letters showing you are the personal representative, guardian, or conservator.
• Keep a clear paper trail: file the petition, keep copies of notices, and save the court order and closing statements for the court record.
• Get at least one professional valuation or appraisal before petitioning to sell, especially if beneficiaries may object.
• Communicate early with the mortgage lender: learn the payoff amount and whether lender consent is required for a short sale or assumption.
• Work with a title company experienced in probate/guardian sales — they can guide required documents at closing and handle mortgage payoffs.
• Expect and budget for court costs, appraisal fees, and possible attorney fees; these reduce net proceeds.
• If deadlines are urgent (e.g., property deterioration or pending foreclosure), state the urgency clearly in the petition and ask the court for expedited relief.
• Check county local rules and forms: probate practice varies by county; some counties publish required forms and checklists online.
• If multiple heirs or beneficiaries exist, consider mediation before court to speed approval and reduce costs.
• After sale, promptly file the final accounting and copies of payoff statements so the court can close the matter without further delays.