If I inherit a house through a family member's will and the mortgage is not completly paid off, I am responsible for the remaining money owed correct?
What happens if I cannot afford the mortgage? Am I able to sell the house for what the house is worth?
2006-10-01 15:13:32 · 9 answers · asked by hicksvilleny 2 in Politics & Government ➔ Law & Ethics
Yes.It Is Legally Your House Now To Do What You Want To With It.I Wouldn't Though If The Person That Gave Me The House Was Important To Me.
2006-10-05 09:54:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes to the first question. But, you don't inherit the mortgage as well. You should be able to explore getting your own mortgage to pay off the rest of what's owed on the house. This can work in your favor or not, depending on the circumstances. What I mean is that if the interest rate is really high because the person who willed it to you never took the time to re-finance recently, you could be able to afford payments on a 30-year mortgage at today's lower rates. On the other hand, if they did refinance in the last couple years, maybe even taking out some equity in cash, you might be looking at a higher rate on a new mortgage AND the house not being worth as much as it could be sold for, such that you would be in an untenable position and you'd be just as well off to let the bank foreclose. If they did foreclose without you getting a mortgage, you are NOT on the hook in terms of negative credit impact, your deceased family member would be.
It is also possible if your credit is as good as whomever you inherited from, they could transfer the mortgage to you.
If I were you, I would contact whomever holds the mortage and find out what they are willing to do for you. If they don't want to play ball, talk to a realtor for ideas and references to other finance companies.
In any case, if you can't swing a deal to finish paying for the house, you can sell it and take as profit the difference between what you sell it for and what is still owed on the mortgage.
Note there may be certain tax liabilities and you probably need to chat with a lawyer and/or tax accountant to make sure your t's are crossed and i's dotted.
2006-10-01 22:25:14 · answer #2 · answered by spongeworthy_us 6 · 0⤊ 0⤋
I'd find out from the inheritance laws in your state (get a lawyer!) if you really do have to pay off the mortgage, or if the dead family member's estate is responsible for the remainder. Look to see if they carried mortgage insurance.
Next, if you can't afford the mortgage, consider renting it if you live nearby. You don't want to manage a long-distance rental! Too many possibilities for abuse and damage to the house, and someone needs to be there in case problems (like burst pipes) happen.
Yes, you can sell it if the deed is in your name. Use a real estate lawyer to avoid high estate agent fees, especially if you can advertise the house on a website, ebay, or have potential buyers. You would probably have to show the house yourself, though. That does take a bit of time, but you can save thousands of dollars!!
You will have to use part of the profits to repay the mortgage, but you sell the house for market value and just pay off the mortgage. At the closing, the unpaid mortgage is usually deducted from the amount you're paid. This is a normal, everyday thing for real estate people, they're used to dealing with things like this, so don't worry, your situation's not unusual.
2006-10-01 22:41:21 · answer #3 · answered by Mmerobin 6 · 0⤊ 0⤋
First you need to make sure that the deed is on your name, than you might want to try to rent it before you sell the house, the home prices are currently going down so wait some time. But as soon as you get the deed you should be able to sell.
2006-10-01 22:17:55 · answer #4 · answered by Jax4all 4 · 0⤊ 0⤋
If you inherit a house and it has a mortage on it, you will have to make arrangements to take over the mortage to keep the house.
If not you will need to sell the house. and you can sell the house for what you can sell it for, hopefully for what it is worth, but the mortage company gets its money first from the sell.
You get the balance.
2006-10-01 23:45:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes to both. you are responsible for the remainder of the mortgage payments and you can sell the house, payoff the remainder of the mortgage and what ever is left over after the sale will be yours.
2006-10-01 22:24:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Well it depend if ur relative had insurance to pay for it if something happens.and i'm sure if u r responsible than u have the right to sell and pay the remaining loan off .u need to talk to a lawyer and find out ur rights.
2006-10-01 22:24:26 · answer #7 · answered by Anonymous · 0⤊ 0⤋
i would say yes.
2006-10-01 22:17:43 · answer #8 · answered by jan 3 · 0⤊ 0⤋
yes,yes
2006-10-01 22:17:25 · answer #9 · answered by Anonymous · 0⤊ 0⤋