Inheriting a Bay Area House with a Mortgage
What Are Your Options When You Inherit A Bay Area House With A Mortgage
Losing a loved one is never easy, it is one of the most emotionally draining experiences we can go through. While grieving, the last thing we want to deal with is the probate process, but it is an essential part of society and best addressed in a timely fashion. Delaying taking action to handle your loved one’s estate can cause confusion with creditors and late fees. One of the most significant assets on most people’s estate is their house. If the house is paid off then it’s fairly simple, you can keep it or you can sell it and collect the proceeds. When it gets a little trickier is when the house has a mortgage.
What to do if you inherit a house with a mortgage in the Bay Area?
First thing, is there a co-signer or someone else on the mortgage, if so this person will be responsible for maintaining the loan by making the payments. If there is no one else on the mortgage then you will need to contact the lender and let them know about the passing and that you have inherited the property. They will have you submit a copy of the death certificate among other paperwork. Once this has happened they will share with you the details of the loan, what the balance is, how much payments are, etc.
In most cases as family member or spouse that inherited the property, the mortgage company will allow you to take over the loan under the same terms. If this is the case you can keep the house by simply making the payments. If you decide to sell your inherited Bay Area house you can do so and now you know how much is owned on the mortgage.
Can I assume a mortgage if I’m not related to the deceased?
The Garn-St Germain Depository Institutions Act of 1982 allows relatives and spouses to assume mortgages when they inherit Bay Area property with a mortgage. Non-relatives cannot simply assume the mortgage despite having inherited the house. If you are unable to take over the current mortgage, you can obtain new financing to payoff the current loan or you can simply sell your inherited house.
Navigating the process of taking over a house with a mortgage while dealing with the stress and heartache that comes with losing a loved one can be overwhelming. Proud Start Real Estate Solutions is her to assist. We are your Bay Area House Buyer and have plenty of experience with inherited properties. Give us a call to find out what options you have.