In general, when a person passes away with property titled in her name a probate estate must be opened with the county Probate Court in order to transfer title to the property. The powers of attorney terminated upon the death of your mother.
However, in Indiana, state law permits the transfer of title of a decedent's real and personal property by a "small estates affidavit" when the decedent's gross probate estate does not exceed $50,000. This means if the total value (gross value minus all liens and encumbrances) of a decedent's real and personal "probate" property is less than $50,000, a small estates affidavit can be prepared and utilized instead of opening a probate estate with the court. In your case, the net value of the probate property (assuming there is no other valuable probate property in the estate) is approximately $28,000. Therefore, you will be able to utilize the small estates affidavit to transfer title to the property.
It is important to note that as of July 1, 2007, in Indiana the small estates affidavit procedure applies to the transfer of real property. This is in contrast with states such as Illinois where the small estate affidavit procedure is unavailable to transfer title to real estate of a decedent.
The proper procedure would be to quit claim deed the property, subject to the existing mortgage, to yourself as an heir of your mother's estate (assuming you are the only heir of the estate) and properly record the deed with the county recorder of deeds. Thereafter, you will be the record title-holder and can sell the property as you see fit.
-- Michael T. Sawyier
