Short answer — is a sale possible?

Yes. A house that is part of a probate estate in Connecticut can usually be sold while probate is pending, even if there is a mortgage on the property. But the sale must follow the legal rules that govern estate administration: the personal representative (executor or administrator) needs authority to sell the property, debts (including the mortgage) must be addressed from estate funds or sale proceeds, and often the probate court or the mortgage lender will need to be involved or give consent.

How authority to sell works

Authority to sell depends on how the estate is set up and who is acting for the estate:

• If the decedent left a will naming an executor, the executor generally has the duty to collect assets and pay debts. Some wills expressly grant power to sell real estate; other times the executor must ask the probate court for approval.
• If there is no will, the court appoints an administrator who has similar duties and must follow the probate process to sell estate property.
• Even when the personal representative believes a sale is necessary, Connecticut probate procedure may require filing a petition or getting court permission before closing a sale, depending on the size and nature of the estate and whether the will or statute already grants sale powers.

For general probate forms and information, see the Connecticut Probate Court website: https://www.jud.ct.gov/probate/.

How the mortgage affects a sale

Practical effects of a mortgage on the sale:

• The mortgage is a secured debt attached to the house. At closing, mortgage payoff is normally paid from the sale proceeds to clear the title so the buyer receives marketable title.
• If sale proceeds are enough to pay the mortgage and estate expenses, the remaining money becomes part of the residue of the estate and is distributed to beneficiaries according to the will or Connecticut intestacy rules.
• If the mortgage balance is greater than the expected sale price (an underwater mortgage), options include a short sale (lender approval required), paying off the deficiency from other estate assets, or asking the court to authorize a sale despite the shortfall. The lender controls whether it will accept less than the full payoff.
• If the estate lacks funds to maintain the property, the personal representative can petition the probate court to sell the property so debts and costs can be paid from sale proceeds.

Typical steps to sell the property during probate

1. Confirm who is the personal representative (executor or administrator) and whether the will gives power to sell. If no one has been appointed yet, someone must petition the probate court to be appointed.
2. Notify the mortgage lender promptly. Lenders often require documentation that the person contacting them is the authorized representative of the estate (a probate appointment or letters testamentary/administration).
3. Obtain a title search and determine the mortgage payoff amount and any other liens. These must be cleared at closing for the buyer to receive clear title.
4. If necessary, file a petition in probate court seeking authority to sell real estate, and request any required court approvals such as approval of the sale price, proposed sale terms, or agreement to accept less than the mortgage balance.
5. List the property and negotiate the sale. Provide the buyer and their lender with documents proving the personal representative’s authority—typically “letters testamentary” or “letters of administration” from the probate court.
6. At closing, use sale proceeds to pay the mortgage payoff, closing costs, probate costs, taxes, and any creditor claims before distributing remaining funds to beneficiaries.

Common issues and how they are handled

Lender demands to accelerate or foreclose

Contact the lender immediately. Lenders may allow a brief forbearance, approve a short sale, or require a payoff. The lender’s policies and whether payments are current will influence options. If foreclosure proceedings have started, consult a probate or real estate attorney promptly.

Insufficient estate funds to cover mortgage and expenses

If the estate lacks liquid funds, selling the property can be the practical way to pay debts. The personal representative should ask the probate court for authority to sell and for guidance on using sale proceeds to pay creditors and costs.

Family disagreement or competing claims

Disputes between heirs or creditors can slow or block a sale. The probate court can resolve disputes, allow sales over objections in certain circumstances, or set procedures for distribution. Consider mediation or counsel when disagreements arise.

Paperwork you will probably need

• Letters testamentary or letters of administration from the probate court proving authority to act.
• Probate court orders authorizing sale, if the will does not already give explicit power or if the court requires it.
• Mortgage payoff statement from the lender and any payoff authorizations.
• Title search and any payoff figures for liens, taxes, or assessments.
• Sale contract and closing documentation prepared or approved by a closing agent or attorney.

Where to look in Connecticut law and court resources

Connecticut probate practice is governed by state statutes and local probate court rules. Useful official resources:

• Connecticut Judicial Branch — Probate Courts and estate administration information: https://www.jud.ct.gov/probate/
• Connecticut General Assembly — to review statutes on decedents’ estates and fiduciary powers, search Title 45a (Decedents’ Estates) at the Connecticut General Assembly website: https://www.cga.ct.gov/current/

Helpful Hints

• Act early: notify the mortgage lender as soon as you become personal representative to learn payoff figures and lender requirements.
• Get formal appointment letters from probate: lenders and title companies almost always require official proof you are authorized to act.
• Use a real estate attorney or a closing agent who handles probate sales in Connecticut. Probate sales often require extra paperwork or court orders.
• Don’t distribute proceeds until all creditor claims, taxes, and probate expenses are paid or properly reserved.
• If the mortgage is more than the home’s value, discuss short sale options with the lender and ask the probate court for guidance before attempting distribution.
• Keep thorough records: copies of notices to creditors, sale agreements, lien payoffs, and court orders will be essential for final accounting to the court and beneficiaries.
• Consider getting a professional appraisal and a title search before listing so you and the court can see likely outcomes and any encumbrances to be resolved.