My dad died and left his house to me through a warranty deed - no probate or anything, it's automatically mine.
He owed WAY more than what it can be sold for. I don't want to live there, and renting it out wouldn't cover the expense of keeping it. I don't want to keep it, I can't sell it… I'm way too broke to try to spend the next 30 years paying that and my mortgage on my house.
Am I stuck with it? Do I have to sell it and take a loss? Can I just give it back to the bank? What are my options? Please help!!
Thanks!
2006-06-14 04:18:36 · 16 answers · asked by Mellie 2 in Business & Finance ➔ Personal Finance
I should mention that two reasons I don't want it are (1) it has toxic black mold which may have contributed to his death and (2) it is in a VERY bad neighborhood.
2006-06-14 04:29:44 · update #1
Contact the loan officer, and ask him, most will allow a death foreclosure, but you will have to pay a penalty for this house. But consider it carefully, you may not want it now, but in time you may want it for it's sentimental value that it was your fathers. but also look around and get the house reappraised, it may be worth more than you think. Also if the previous owner died I think you have so many days to just give it back to the bank in leu of paying the loan, unless you have already begain to make payments then that ship has sailed.
2006-06-14 04:23:10 · answer #1 · answered by cisco_cantu 6 · 0⤊ 0⤋
Contact a very good CPA, bring in documents to show what is going on. Ask what your options might be.
You may also want to interview a few very good attorneys versed in real estate law. Just call and ask for 15 minutes for a consultation, ask if they charge for that and how much. I would say anyone charging more than $50, forget.
Bring in your legal documents, explain the show the debts. Ask for options, don't just ask "what should I do". You want several options, write all down.
This all depends on the state where the debts were incurred, where the house is located, etc.
My simple answer (without seeing paperwork or knowing the laws in your state) would be to sell the house (make it look as presentable as possible) and pay off the debts that cannot be charged off (ask the CPA about credit card debts being charged off). There are other things you can do, that is why I want you to invest some time with a good CPA and real estate attorney that come highly recommended.
2006-06-14 04:31:15 · answer #2 · answered by MadforMAC 7 · 0⤊ 0⤋
If its got a non-recourse loan, meaning you aren't personally liable for the debt on it, you may want to consider walking away from the house and letting the bank have it. In the very least, the threat of doing so may force the bank to renegotiate and write off the part of the loan that is underwater which will allow you to sell it. Banks aren't in the real estate business and they would prefer not to have to take back property, so if they know the value of property is a certain amount, they can often be convinced to lower the debt to that. You may want to consult with an attorney on this matter though to find out what your best options are.
2006-06-14 08:08:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You could always donate it to a charity. If they have the funds to clean it up as far as the mold, they may be able to put it to good use, even serving the population of the neighborhood in which it is located. Maybe it could be a place for homeless people or abused women. A donation like that could count towards a big tax deduction.
2006-06-20 19:31:55 · answer #4 · answered by Moonmaiden 2 · 0⤊ 0⤋
Talk to a realtor, a real estate lawyer or a CPA. You need more information before you make a choice. The realtor may consult for free if you promise to sell through him/her. The other will charge you for their time, so pick good ones, pay attention, and take notes.
2006-06-14 04:23:55 · answer #5 · answered by Ralfcoder 7 · 0⤊ 0⤋
I don't really know that much about stuff like this, but I thing you're stuck w/ it unless you could find a quick fix-up and try to sell it to at least cover the costs owed.
2006-06-14 04:22:27 · answer #6 · answered by nik 2 · 0⤊ 0⤋
Talk to the bank and tell them you want to wash your hands of it. The bank will work with you to get rid of it. You may take a bath on it and not receive much if anything but hey....it's the monkey off your back that you want..right?
2006-06-14 04:21:50 · answer #7 · answered by Quasimodo 7 · 0⤊ 0⤋
There is no rule saying you have to accept an inheritance. Check with a lawyer. You probably just need to have something filed with the court.
2006-06-14 09:02:20 · answer #8 · answered by Custody1 3 · 0⤊ 0⤋
Talk with a lawyer and fine out your options
2006-06-14 04:23:08 · answer #9 · answered by MasterRB 2 · 0⤊ 0⤋
hire a realtor , he or she will help sell your house , they have many marketing plans that will help you . , they will bring more business to you than you think , and their services are free .
they make their money off the buyer .
2006-06-14 04:23:49 · answer #10 · answered by Anonymous · 0⤊ 0⤋