Inheriting a house with a mortgage? Learn your options and discover how selling as-is to Camarotti Homes can help you avoid stress and foreclosure.
With 61.5% of all homes having mortgages on them, it's no surprise that you end up inheriting a house with a mortgage. Having a house with a mortgage attached to it can feel frustrating, especially if you don't know what to do with it, but you must know that you have several options.
According to Florida law, an heir isn’t obligated to pay a deceased person’s debt unless they were co-signers and are through probate or assumed the mortgage. This means that while you can't inherit another person's debt, the mortgage doesn't attach to you personally but to the property itself.
So, you want to keep the inherited property with a mortgage? In that case, you must first satisfy the mortgage by paying it off, refinancing, or selling the home, or if you want to use the property. You also have the option to assume the loan and pay off the remaining mortgage by yourself.
While inheriting a house with a mortgage might seem like the end of the world, you, as an heir, still have plenty of options for managing the mortgage after inheriting it. Whether you decide to keep it for sentimental value or convenience, or sell your home in Florida, here are various options.
Choosing to sell a house with mortgage is common among homeowners, especially if they can't afford it or don't want to live there.
However, when you sell a house with mortgage, remember that it might be more strenuous than selling a house without a mortgage, since it involves some extra steps, such as determining the remaining loan balance and estimating the net proceeds.
Just as you’re free to sell your home fast, you're also free to keep the house, especially if you have the money to pay the outstanding balance. If not, you could always assume the mortgage and pay the remaining balances like any other.
This is a great option, especially if you're already living in the property or want to live there if it holds sentimental value. However, it's essential to remember that you might need to spend a bit more on necessary repairs, taxes, and insurance if you assume ownership over the property.
Another way you can keep the house is by refinancing the loan by officially replacing the existing mortgage with a new loan in your name. By exercising this method, you gain complete control over the property and mortgage; however, remember that you should meet the income and credit requirements.
With a short and simple answer, yes, you can sell your home in Florida even if it has an existing mortgage.
As the law doesn’t expressly prohibit the sale of a house or property with an existing mortgage, this practice has become common among homeowners, especially since you can also pay off the remaining balance of your mortgage through this method.
While death can be an overwhelming and emotional ordeal, it's essential to keep in mind that when it comes to foreclosure on an inherited property with a mortgage, you need to be quick on your feet and have a solid plan in place; otherwise, you might lose the property in a blink. Here's a short guide on avoiding foreclosure on an inherited property.
Before anything else, it's essential to know the status of the mortgage—how much is the remaining balance, whether the mortgage is in default or not, and other necessary information that you can use to explore your options.
Before you do anything, it's essential to first probate the estate to legally transfer the ownership of the property from the deceased to you, the heir. Once the property’s under your name, you can contact the lender or sell the property on your own.
The next step is to contact the lender. Don't hesitate to contact the lender and ask them if they can help you buy time and explore alternatives. Inform them that you've just inherited the property and weren't aware of its status until it was formally transferred into your name. Once they learn about your situation, they'll more likely give you alternative options on how to repay the loan taken out on the property.
Once you've explained your situation to your lender, they'll give you a few alternatives that you can exercise to pay the mortgage and avoid foreclosure, which include refinancing the loan in your name, selling the property, and applying for loan modification or forbearance.
After knowing your options, it's still essential to get professional help as each step requires you to have someone that's not only well-versed in the industry but also the law itself to ensure that what you're doing brick by brick is per all the legal procedures and help you understand each alternative option that'll fit best with your current situation.
From online markets to traditional listings to short sales, there are various methods that you can use to sell your home fast. One of the best options out there is through an as-is sale. When you sell your inherited property as-is, it means whatever issues that come with it become the responsibility of the buyer.
Here are some reasons why selling as-is is your best bet when you inherited a property with a mortgage in Florida.
Suppose you want a process that's faster than others. In that case, you should sell your house as-is since through this method, you can easily forego any repairs or renovations that you spend money on and time on. You also don’t have to worry about the financing since Florida homebuyers who buy houses as-is often pay with cash up front.
Selling a house isn’t as simple as posting a picture online since you need to show off your house’s best features before Florida homebuyers can even consider buying your home off the market, which means enhancing curb appeal, expert staging, and small or significant improvements.
With as-is sales, you don't have to worry about any of that since what they expect from you isn't a well-polished home but a home that often requires a little bit of TLC.
Negotiations can last for days in a traditional sale, especially if you can't agree on a price and the repairs. However, when you sell your house as-is, since you won't have to do any repairs and buyers accept the house in its current condition, you won't have to worry about lengthy negotiations.
Inheriting a property isn't as simple as getting a free house, since sometimes these properties have mortgages and liens attached. While you always have the option of keeping it, it's much easier to sell it and free your hands of any responsibility it entails.
However, finding a buyer who understands your situation can be challenging. Luckily, Camarotti Homes is here to guide you every step of the way.
With Camarotti Homes, you don't have to worry about anything else—got an old, ugly house you inherited? We got you since we buy ugly houses, whether big or small. Do you need to sell your home to pay off the mortgage? Don't worry, since we buy houses for cash.
No matter your situation, we’re here to help. Contact us now and let us take off your hands the burden and stress of selling your inherited property.
No effort needed, no hidden fees. Receive cash and a fresh start in as little as 7 days.
