I just Inherited my parents Charlotte home in probate, what are my options?
Losing a loved one and dealing with death is hard. What often gets overlooked is handling their assets and debts this is know as the Probate process. I hope this will help inform people what their options and responsibilities are in this situation…
First, is there a mortgage on the home still…?
You will have a few different options in terms of dealing with it in this scenario, but first you need to figure out who is responsible for the property.
Before we worry about anything to do with inheritance, we need to determine if the mortgage had a cosigner. If the loan had a cosigner, that person is responsible for continuing the loan payments following the owner’s passing.
If there’s no cosigner, one of two things can happen:
If the person’s spouse isn’t living there and there are no other family members that are heir to the property, the lender can take possession of the property and attempt to pay off the remaining loan balance by selling the house. If the sale doesn’t cover the existing balance, the lender may be able to seize other assets to cover the remainder of the debt, or they may simply have to assume the rest of the debt. The lender’s options vary depending on where you live.
If the person has a surviving spouse that still occupies the property, they can continue to make the mortgage payments regardless of whether they were initially on the loan. The same can be said if the house is inherited by a family member, whether it’s through the will or probate.
What Are Your Options?
If you inherit a mortgage and want to keep the house, the first thing to do is contact the server of the loan. They’ll need to see a death certificate and verify that you’re the heir of the house before they can give you more information on the loan balance.
Once that’s done, you’ll be able to consider your options. If you have the money, maybe the best option is to just pay off the house. You can do whatever you want with it, including sell or rent it out, unencumbered by a mortgage.
Fast cash sale: This is a popular option, but that isn’t to say it is the best for everyone. However, in certain circumstances; you live out of state, living on gov’t assistance, home needs a ton of repair, ect. This feels like a god send for them. As Charlotte, NC Home Buyers we provides the ability for you to sell your Charlotte home in probate quickly. We do this by paying cash and purchasing the property in AS-IS condition. (You don’t have to fix anything and don’t have to deal with unwanted junk) there are also no closing costs you need to pay out of pocket. And the closing of the sale is around 14 days after the agreement is signed. If this is an option you are considering please call this number to receive your cash offer: 980-288-5526
Houses are included in estate taxes. If the house is being passed to heirs, they will have to pay taxes on the fair market value of the property out of the funds and assets in the estate. Consult a tax adviser to go over your options for determining fair market value.
If you sell the property later on for more than the fair market value at the time you inherited it, you’ll have to pay capital gains tax on the difference between the sale price and the fair market value. For example, if the house was worth $100,000 at the time of the person’s death and the heirs later sold it for $105,000, they would pay capital gains tax on $5,000.
Grieving the death of a loved one is hard enough without having to worry about any financial responsibilities left behind. Talk to your family members about finances so that everyone can be better prepared if something happens.
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