Not every inheritance is a good one. If you recently inherited a house with debt, the mortgage company may attempt to collect the debt or foreclose on the house during probate. However, if you can sell the house, you may be able to settle the debt and distribute the remaining inheritance among the beneficiaries.
The biggest challenge to selling a house during probate is timing. It can take months to prepare the house for sale, find buyers, and close the deal. A traditional home sale can delay probate, preventing you from settling debts and distributing the inheritance. Fortunately, there is a solution for selling houses in your local market.
What Are My Options if I Inherit a House with a Mortgage
If you have an inherited house with a mortgage, you need to consider the lender and the terms and conditions of the loan contract. You also need to explore what options are available for you and the other beneficiaries.
Option 1: Assume the Loan
You can work out an agreement with the beneficiaries and the mortgage company to assume the loan and keep making payments on the house. According to the loan contract terms, you pick up where the loan left off and pay the mortgage every month.
The downside to this option is that you can take on thousands of dollars in debt. Plus, the lender may want to change the mortgage terms based on your current financial situation. You may pay a higher interest rate or monthly payments.
Option 2: Keep the House
If your loved one had other assets that you could use to pay off debts, you might be able to use those assets and keep the house. It can be advantageous to keep the house and use it as a rental property. Or a beneficiary can move into the house.
Option 3: Sell the House
A third option is to sell the house to pay off the mortgage and other debts. If the house is in good condition, you may be able to find a buyer who can purchase the house at a good price, giving you the money you need to settle the debts, distribute the inheritance, and complete the probate process.
What Is the Best Way to Sell My House During Probate?
If you need to pay off a loved one’s remaining debts or taxes, the best way to sell your house during probate is to sell your house as-is for cash to a company that buys houses in your local market. A professional home buyer can look at your house, make a fast cash offer, and close the sale in as little as a week.
There are several benefits to a cash home sale.
- Sell your house when you want.
- Make no repairs or upgrades to the property.
- Sell your inherited house regardless of your situation.
- Work with a single pre-qualified professional buyer.
- Use the quick cash to pay off debts or distributor the inheritance.
A cash sale simplifies the home selling process and allows you to close out your probate case faster and with fewer expenses. You and your family can move on more quickly.