Belt Auction

What can we legal do in this situation?

Father died a year ago and we're still working on the estate. We currently have a law suit against us from the mortgage company and have been trying to work with them but they keep blocking potential sales. Without being notified prior to the decision, they've decided to auction the house off with the county severely under-valued while expecting the estate to cover the deficiencies (meaning none of us 3 kids are going to have a college fund anymore). While the house was up for sale the neighbors went out of their way to gossip to the real estate agents that came to show the house and because of it, suicide ended up on the disclosure which was untrue. We suspect the local police had gone out of their way to talk to the neighbors and may have run their mouth even though it was clearly a heart attack. My question is, can the neighbors/local police(if they're found to be the source) be held liable for the deficiencies or be sued? Sources would be appreciated more-so then opinions. To answer the question of the first poster : My older, spastic, brother was supposed to open the estate up but skipped town for over 6 months when his money ran out from a joint account. Ended up showing back up when the market crashed trying to open the estate. We couldn't pay the mortgage since we couldn't open the estate since there was no executor. After months of trying to get an executor (neither me or my brother could be, and since my mom got hit with the suit for the home she couldn't be) we had to get a third party. Since then we've been battling trying to get the home sold and have encountered problems from the real estate agents and bank. The value of the house was severely over inflated (valued and sold for over 600k, now worth a little over 300k) and the value's been severely depreciated due to the market crash/housing crisis.

Public Comments

1. No, they cannot be held liable. Now to the matter of how you are handling this mess. Since you admit that you have 'college funds', why has the estate NOT been making the mortgage payments ? When you finally DO sell the house, you will be required to pay off the loan balance, along with all the past due interest, plus late payment penalties, anyway. Handling it the way you are is going to DECREASE the net proceeds from the sale. If the estate has cash available, then make those payments NOW. Next issue is the death disclosure. If you have proof that father died of a heart attack, then get a copy of the death certificate, with cause of death indicated. Keep copies handy when the house is shown to a prospective buyer. And then get 'suicide' off that disclosure form, since you will have proof otherwise. And get the property BACK on the market.
2. your attorney should be handling this and looking out for you.
3. You need informed legal advice, not Yahoo advice.
4. Forget yahoos. Forget the conspiracy theories. Forget suing anyone. You need legal advice, not from yahoos.