Section 473.287

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

Chapter 473

Effective - 28 Aug 1957   

  473.287.  Encumbered property to be redeemed, when. — 1.  If any person dies leaving real or personal property encumbered by mortgage, deed of trust, pledge, or other lien, or owning any equity of redemption, the court, in accordance with the provisions of this subsection, may order the executor or administrator to redeem the same, in whole or in part, out of other personal assets of the estate, or may order the executor or administrator to sell other real estate or to mortgage or pledge real or personal property of the estate in his hands for the purpose of raising money for such redemption.  If there is a will section 473.620 applies with respect to the application or use of the property for the redemption.  When not prejudicial to the rights of creditors, the court may order redemption, if it finds:

  (1)  The property is not specifically devised by a will and redemption will promote the interests of the estate and upon payment of the secured debt the security will become an asset of the estate; or

  (2)  The will of the decedent, either by express provision or clear implication, shows that the decedent intended that the secured debt, in the event of his death, should be paid out of other assets of his estate and the security exonerated from the lien of the debt; or

  (3)  From the terms of the loan or mortgage agreement or from the circumstances surrounding the loan or mortgage transaction, that decedent, whether testate or intestate, intended that the debt, in the event of his death, should be paid out of the other assets of the estate and that the security should be thereby exonerated from the lien of the debt.

  2.  No redemption of property securing an obligation which is not due shall be compelled under this section without the consent of the holder of the secured debt unless a claim is filed thereon or the instrument creating the obligation permits redemption.

  3.  The court may order all of the right, title and interest of the deceased in the security to be sold for the same purposes and under the same conditions and procedure as is provided in this law for sales of other property of the decedent.

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(L. 1955 p. 385 § 113, A.L. 1957 p. 829)

Prior revisions: 1929 § 139; 1919 § 138; 1909 § 147

CROSS REFERENCE:

Foreclosure of mortgages stayed by death of mortgagor, 443.300