So you've inherited a house, now what?
To begin with we would like to offer our condolences for your lose. The passing of a loved one is very difficult. Surely, the last thing you want to deal with is figuring out what to do with all of their stuff. But the reality is that this needs to be done, and often the sooner the better. This article will address 4 key things to be aware of when you have inherited a house, hopefully after reading; you will have a better understanding of your obligations in this situation.
When someone passes away their estate is typically administered through probate court, this is the legal process of paying off any debts then distributing the deceased’s property. An executor is selected, typically a close friend or family member, to oversee the process. Depending on the particulars of the estate this process can take months to resolve, becoming very aggravating and stressful for beneficiaries, who are not only in mourning, but also may be struggling financially and need the money to stay afloat.
If the deceased person has a valid will, the court will follow the terms of the will through the probate process, making sure any debts are paid and assets are distributed accordingly. If the deceased person does not have a valid will they are considered to be intestate and assets will be distributed according to state laws, which may be drastically different from what deceased would have wanted.
If the house you inherited still has a mortgage it is possible that the lender will call for the balance of the loan to be paid off. If you do not have the money to pay the loan you will need to take out a new mortgage in your name. Most mortgages in today’s environment have this sort of due-on-transfer or due-on-sale clause written in.
Taxes, Maintenance, and Violations
After you have completed the probate process and actually own the house, you are responsible for its up-keep. This includes property taxes, interior and exterior maintenance, correcting any code violations. Owning a house has many benefits but also requires time and money. Given that you most likely won’t be living in the property, you have actually inherited a new job: landlord. Being a landlord presents a special set of challenges; tenant screening, collecting rent, repairs, etc.
Inheriting a house can definitely be a financial gain for the beneficiaries however, as you have just read, there are several possible issues that may need to be addressed. If you decide that you would rather not deal with any of the burden we are happy to assist. Proud Start, LLC is locally owned and operates throughout the Bay Area. We will buy your house, fast for cash. We buy Bay Area houses and are always sympathetic to your situation. Fill out the form to your right or give us a call today at 925-322-1008! We will work with you to create a fresh start you can be proud of!