Detailed Answer

If the house is subject to court supervision in Nebraska (for example, it is part of a decedent’s probate estate, a guardianship/conservatorship, or a court-supervised bankruptcy or foreclosure matter), you typically must obtain a court order before selling the property and using sale proceeds to pay the mortgage. The exact process depends on the legal role you hold (personal representative/executor, administrator, guardian/conservator) and on whether the owner left written instructions (a will or trust) that authorize a sale.

Step-by-step overview

1. Identify the legal authority you have to act. If you are the property owner, you usually can sell the house without court permission. If the property belongs to a probate estate, a minor, an incapacitated person, or is otherwise controlled by the court, you must act through the court process. Common roles that require court approval: personal representative (executor/administrator) of an estate, guardian or conservator for an incapacitated person, or a trustee (trust issues are usually handled under trust law rather than probate).
2. Confirm the reason for court approval. Courts require approval when sale proceeds will be used to pay estate debts, when the property is unique (family home), or when statutory authority is lacking. In Nebraska, probate and guardianship matters are governed by the Nebraska Probate Code; see Chapter 30 of the Nebraska Revised Statutes for governing rules and procedures: Neb. Rev. Stat. Chapter 30 (Probate). For practical court forms and basic procedures, the Nebraska Judicial Branch provides self-help resources: Nebraska Courts — Probate & Guardianship Self-Help.
3. Prepare a petition or motion and supporting documents. Common elements include: a verified petition describing the property; the reason for the sale (to pay mortgages, estate debts, taxes, or to convert assets to cash); a proposed method of sale (private sale vs. public auction); a copy of the mortgage payoff query or lender statement; and an appraisal or broker price opinion if available. If you are a personal representative, include a copy of your letters testamentary or letters of administration.
4. File the petition with the correct court. File in the county court handling the probate, guardianship, or other proceeding. The court clerk will set the case for a hearing or enter an order after required notice and timelines are met.
5. Provide notice to interested parties and creditors. Nebraska law requires notice to heirs, beneficiaries, the mortgagee(s), and other interested persons. The court will also require notice consistent with probate rules so creditors and others can object. The court’s notice rules and deadlines are found in the Nebraska Probate Code and local court rules (see Chapter 30 linked above and local county court rules).
6. Attend the hearing (if required) and obtain a court order authorizing the sale. At the hearing the judge will review the petition, any objections, and evidence that the sale is fair and reasonably necessary. If the sale is approved, the court will sign an order giving authority to sell on specified terms. The order may require a confirmation hearing after sale if statutory rules apply.
7. Complete the sale and pay off the mortgage at closing. Use the court order to complete title work and closing. Provide the lender the court order and request a payoff statement. The closing agent or attorney will typically disburse funds to pay off the mortgage and other allowed encumbrances before distributing remainder to the estate or the protected person’s account. Record the deed and the mortgage satisfaction (release) with the county register of deeds to clear title.
8. Report back to the court and obtain final accounting or distribution approval. After sale and payoff, you must generally file an accounting or a report of sale and distribution showing the sale price, payoff amounts, closing costs, fees, and remaining distributions. The court will review and close the transaction in the case file. Keep copies of all payoff statements and recorded documents.

Variations you may encounter

• If the decedent’s will expressly authorizes a sale, the personal representative may have easier authority, but filing and notice requirements still usually apply.
• Trust-owned property typically transfers under the trust terms; a court sale is not normally needed unless there is a dispute or the trustee lacks explicit power.
• If you need to sell quickly to avoid foreclosure, the court can sometimes authorize expedited relief, but you must document the urgency and give proper notice.

Key Nebraska resources and statutes

Primary statutory framework for probate and guardianship matters: Neb. Rev. Stat. Chapter 30 (Probate). For local forms and guidance, see the Nebraska Judicial Branch self-help pages: Nebraska Courts — Probate & Guardianship Self-Help. If you believe a guardian, conservator, or personal representative must act immediately to prevent loss, the county court can consider emergency motions—use court self-help or contact the clerk for local procedures.

Common documents you will likely need

• Letters testamentary or letters of administration (or court appointment documents)
• Verified petition or motion to sell real estate
• Proposed order authorizing sale
• Purchase agreement (for private sale) or proposed sale terms
• Appraisal or broker price opinion and lender payoff statement
• Proof of mailed/served notice to heirs, beneficiaries, creditors, and mortgagee
• Closing statement and final accounting for the court

Disclaimer

This information is educational only and does not constitute legal advice. Laws and local court procedures change. For advice tailored to your situation, contact a licensed Nebraska attorney or consult the county court handling the matter.

Helpful Hints

• Start by locating the court file number and your appointment paperwork (letters). Courts will expect these with any filing.
• Contact the mortgage lender early. Ask for a detailed payoff statement that is good through the expected closing date.
• Obtain a professional appraisal or a broker price opinion to support the sale price in court filings.
• Hire a closing agent or attorney experienced in probate sales; they know how to apply the court order at closing and record mortgage satisfactions.
• Prepare clear, itemized accounting of sale proceeds and payoffs—courts scrutinize distributions in supervised matters.
• Check local county court rules for specific filing and notice requirements—procedures vary by county.
• If time is tight, ask the court for temporary authority or expedited hearing rather than waiting for a regular docket date.
• Keep detailed records and certified copies of recorded documents (deed and mortgage satisfaction) to provide to the court and to protect buyers and future title searches.
• When in doubt, consult a Nebraska attorney familiar with probate, guardianship, or real estate — a short consult can often avoid costly procedural mistakes.