Tag: #renovations

So you inherited a house that you are not interested in keeping, but it does have a mortgage attached to it – what can you do?

• Mortgages do not automatically pass into the name of the heir(s) – but they do require that payments continue to be made to keep the lender from foreclosing. You need to advise the lender of the following information to help be sure the loan doesn’t go into default, although this will not put the mortgage in your name.
  • The death of the owner along with a death certificate
  • The new ownership with a copy of whatever documentation the lender requires
  • Advise the lender that you are taking responsibility for the payments and give them your contact information so that all notices come directly to you
  • Ask the status of the loan and payments – if there have been shortfalls, what does the lender require to put the loan into good status?
  • Ask if you can put the loan directly into your name, or if you will you have to re-finance. A surviving spouse is more likely to be allowed to have the existing mortgage transferred into their own name. Otherwise it is common for lenders to require an heir to re-finance.

• “Due on sale” clauses are to be expected on the mortgage – if the property is sold, the mortgage must be paid immediately, regardless of whose name it is in at the time.

• The estate process may do two beneficial things for the mortgage – but be sure you know where you stand with each.
  • The will may direct the estate to pay off the mortgage! Other estate assets will be used if they are of sufficient value.
  • The mortgage may reduce the inheritance taxes, as it may be calculated against the value of the property.

• Two more considerations affected by the mortgage are:
  • Make sure the title is clear so that you can sell. Not only must you confirm where you stand with the first-mortgage lender, you should do a title search (or have the estate do it) and find out if there are any other encumbrances on the property and what it will take to clear them. Surprises could emerge – second mortgages with another lender; HOA liens; etc.
  • A mortgage lender has almost always kept property taxes up to date, with only a partial year due at sale.  But know that inherited property is re-assessed at current market value for future property taxes.

There are many steps to fulfill to proceed to a sale of inherited property carrying a mortgage. You need knowledgeable assistance and to be sure you cover all bases to make sure the sale is legal and proper, and leaves no further issues to hamper your final proceeds.

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Question or Prompt for Response – open ended, relevant

Could you afford an inherited house with a mortgage? What would you do if you inherit one?

Call to Action

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Are you running into tenant troubles while renting your house? When tenants don’t pay, it can put a financial strain on you, the landlord. Even more straining is the possibility of having to fix up the space before you can sell it.

Well, you don’t have to rely on your renters to help you make ends meet anymore and you don’t even have to worry about having a multitude of “honey do” projects! Why not? Well, have you considered selling your house as is?

Selling your house as is can be a quick process with long lasting benefits. I’ll give you a few tips on how to sell the home as is.

1. Do your research. Check out the rest of the houses in the neighborhood and research their value. Realize that you’re selling your home as is and price it fairly. Keep in mind that when you’re selling you want to post a competitive price. Most sellers will have someone come to the property and estimate it’s value so be careful when pricing above what it’s actually worth – don’t be greedy. For example, don’t price it at a higher value than the brand new home around the block.

1. Stage the space. In real estate we use a term called “staging” which basically means setting the stage for buyers to fall in love with the home. Now, I understand you don’t want to put another dime into the space, so I won’t ask you to do that. However, you can really improve the ambiance by adding that nice rug you have stored in your garage or the beautiful lamp you have sitting on the side table in your living space. Adding a few personal touches will really warm up the space and may get you a few extra bucks in the end. But, in the end, if you just want the property off of your hands…

1. Contact PDX Renovations! If you haven’t heard, we’d like to check out your house! Fill out our “Sell Fast Form” and you may have a buyer on your hands. If we like what we see you can expect a cash offer within an hour. See? No hassle and the long-term benefit of not having to worry about the space for another minute.

Now you know the benefits of selling your home as is, and we’ve even given you a few tips! You’ll never have to stress over that property again.

Have you successfully sold a home as is in the past? What techniques have you found helpful in the process?

Do you have a piece of property (house, lot, or land) you’d like to sell fast?  Fill out our Sell Fast Form and get a cash offer within one hour of us viewing the property.