Selling an Estate House Facing Foreclosure When a Co‑Administrator Refuses to Sign — What to Do in Oregon

Quick answer: If a co‑administrator of an Oregon estate refuses to sign documents needed to sell estate real property and the property is at risk of foreclosure, you generally can ask the probate court to authorize the sale, remove or replace the refusing co‑administrator, or obtain other court relief. At the same time, you should communicate immediately with the lender and explore loss‑mitigation or temporary relief (including bankruptcy or a temporary restraining order) to stop foreclosure while you resolve the probate dispute.

Detailed answer: step‑by‑step under Oregon law

This section explains practical steps an executor, administrator, or heir should take when a co‑administrator is refusing to cooperate with a sale of estate real property and the mortgage or deed of trust is moving toward foreclosure. Assume the estate has been opened in Oregon probate court and at least two people have been appointed co‑administrators (or co‑personal representatives).

1. Confirm who has authority to act

First, review the court’s Letters of Administration (or Letters Testamentary) that the probate court issued when the administrators were appointed. Those letters state the powers granted to the personal representative. Sometimes the court’s order or the letters authorize one representative to act alone; sometimes they require joint action by all co‑representatives. If the letters permit one administrator to sell property without the other’s signature, you may be able to proceed. If the letters require joint action, both signatures are normally needed unless the court orders otherwise.

2. Talk to the lender immediately

Contact the mortgage servicer or trustee to explain the probate situation. Lenders are sometimes willing to accept a certified copy of the Letters of Administration and a court order authorizing sale executed by one administrator. Ask whether the lender will: (a) temporarily delay the foreclosure sale, (b) accept a short sale or deed‑in‑lieu, or (c) provide loss‑mitigation paperwork. Getting the lender’s temporary agreement can buy time to resolve the probate dispute.

3. Petition the probate court to authorize a sale

If the co‑administrator refuses to sign, the usual remedy is to ask the probate court for relief. Typical petitions include:

• Petition for order authorizing sale of estate real property. The court can authorize sale by one personal representative, by the personal representative subject to court supervision, or by a court‑appointed commissioner or referee if necessary.
• Motion to approve a short sale or compromised sale. The court can authorize a sale at less than market value if it finds the price is reasonable under the circumstances.
• Application for appointment of a special fiduciary or administrator with authority to sell the property if the current co‑administrator is obstructing administration.

When you file the petition, provide evidence of the attempted sale, the co‑administrator’s refusal, the estate’s financial need (mortgage arrears, foreclosure notices), and any communications with the lender. The court will evaluate whether sale is in the estate’s best interests and may hold a hearing. Probate courts commonly grant authority to sell property to avoid foreclosure where doing so maximizes creditor recovery and benefits heirs.

4. Seek removal or replacement of a co‑administrator when necessary

If the co‑administrator is willfully refusing to perform duties, acting in bad faith, or failing to cooperate, you can ask the probate court to remove them or to limit their powers. Grounds for removal include failure to perform duties, misconduct, or incapacity. The court can replace the refusing co‑administrator with another person or authorize a single representative to act alone. Removal petitions require notice to interested persons and a showing of cause.

5. Consider temporary emergency relief to stop an imminent foreclosure

If a foreclosure sale is imminent, the probate petitioner can request expedited or emergency relief from the court. Options include:

• Emergency order authorizing sale on shortened notice.
• Temporary injunction or restraining order to halt a trustee’s sale while the court resolves the probate dispute.
• Filing bankruptcy on behalf of the estate is not generally possible, but an individual heir or the surviving spouse may file bankruptcy to obtain an automatic stay; consult an attorney about implications.

6. Explore alternatives to a court sale

If the co‑administrator’s refusal is based on disagreement about price or buyer, try negotiation or mediation. Alternatives include a short sale (with lender approval), deed‑in‑lieu of foreclosure, or refinancing (if possible). Mediation can be faster than a contested probate hearing.

7. Practical timeline and costs

Probate petitions to authorize sale or remove a co‑administrator can take weeks to months depending on court workload and whether the matter is contested. Emergency motions may be faster but still require filings and notice. Expect additional costs: filing fees, notice/posting costs, attorney fees, and possibly payment of an independent appraiser or broker. Those costs are usually paid from estate assets.

Legal basis and where to look in Oregon law

In Oregon, probate and administration procedures govern how property is managed and sold during estate administration. The Oregon Judicial Department provides practical probate guidance, forms, and local rules for courts. Lenders and trustees must follow Oregon’s statutes for mortgages and deeds of trust when foreclosing.

Helpful official resources:

• Oregon Judicial Department — probate information and forms: https://www.courts.oregon.gov/services/Pages/probate.aspx
• Oregon Revised Statutes (searchable) — for statutes on probate, fiduciary duties, and foreclosure: https://www.oregonlegislature.gov/bills_laws/Pages/ORS.aspx
• Oregon statutes concerning mortgages and deeds of trust (foreclosure procedures) can be found in the ORS chapters dealing with real property and security interests — search for “mortgage” or “deed of trust” at the Oregon Legislature site above.

Note: specific statute references and local court rules vary by county and the particular probate case. Using the Oregon Legislature’s ORS search and the local county probate court’s website will help you locate the precise rules and forms.

Example hypothetical (illustrative)

Facts: Alice and Bob are co‑administrators of their mother’s estate in Multnomah County. The estate house has a mortgage in default and a trustee’s sale notice is scheduled in 30 days. Bob refuses to sign the purchase agreement for a short sale because he wants a higher price.

Steps Alice could take:

1. Immediately contact the lender to request a temporary postponement of the sale and submit the estate’s Letters of Administration.
2. File an expedited petition in probate court to (a) authorize sale by Alice alone, or (b) appoint a special fiduciary to sell the house. Attach evidence of the foreclosure timetable and the offer.
3. If Bob continues to obstruct, include a motion for removal or for an order limiting Bob’s authority.
4. If the sale cannot be accomplished before the scheduled foreclosure and no postponement is granted, consider emergency motions for a temporary restraining order against the trustee’s sale while the probate court decides.

Outcome: If the court finds sale is in the best interest of creditors and heirs, it can issue an order authorizing the sale despite Bob’s objection. The lender will accept the court order and proceed with the approved sale or short sale, often preventing foreclosure sale at a lower price.

When to consult an attorney

Get a probate or real‑estate attorney if any of the following apply:

• Foreclosure sale is imminent (days or weeks).
• The co‑administrator’s refusal is willful or linked to alleged misconduct.
• The estate has complex creditors, tax issues, or multiple heirs with competing claims.
• You need an emergency court order or to file for removal of a co‑administrator.

An attorney can prepare filings, request expedited hearings, draft proposed orders for the court to sign, and negotiate with the lender on your behalf.

Helpful Hints

• Act fast: foreclosure calendars move quickly; contact the lender immediately and get documentation in writing.
• Gather court papers: certified copies of Letters of Administration, the death certificate, the will (if any), and any communications with the servicer make petitions stronger.
• Try negotiation first: mediation or a short sale can save time and cost compared with removal proceedings.
• Document refusal: keep records of the co‑administrator’s refusal (emails, letters, text messages) to use as evidence in court.
• Ask the court for emergency relief if deadlines are imminent; probate judges routinely handle urgent sale authorization or temporary orders to prevent loss of estate value.
• Remember priorities: mortgage and tax creditors often have priority over heirs; selling to pay arrears is usually appropriate to protect estate assets.
• Local rules vary: check your county probate court’s website for forms, filing requirements, and hearing procedures.

Disclaimer: I am not a lawyer. This article is general information about Oregon probate and foreclosure processes and should not be interpreted as legal advice. For advice tailored to your situation, consult a licensed Oregon probate or real‑estate attorney.