PDX Renovations

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  • Inherited a House? Top Strategies for Selling Your House Fast

    Inherited a House? Top Strategies for Selling Your House Fast

    Selling Your House Fast

    So you’ve inherited a house, only to discover it isn’t the windfall it may have initially seemed. In fact, due to the mortgage and disrepair, you realize you need to sell this new burden as quickly as possible! 

    • If you are in Portland or Phoenix, I have designed my company, PDX Renovations, for situations just like yours – this is first on my list of fast-sell options.
      • We pay cash for houses as-is, properties like yours. We understand this property is beyond your expertise and cash resources.
      • Instead of you possibly becoming entangled in a drawn-out nightmare of a preparation and sales process you never asked for, to begin with, you can take the cash and move on.
      • We can succeed in this business because we are seasoned experts, have lower costs, and know how to avoid pitfalls. That’s why we can make cash offers to bail out others who find themselves with unfortunate house situations on their hands.
    • Hire an auction company to auction your property. This can be a complex process, and your house is not guaranteed to sell. Just a few points to know –
      • Back taxes owed transfer to the buyer. Bidders know this and will adjust their top price accordingly.
      • Mortgages are almost always contractually required to be settled on the sale of the property. If the auction proceeds are less than needed to settle the mortgage, you will still owe the balance – but not own the house. (And the lender will be very unhappy!)
      • Reserve price – You can set a price below which you will not sell, known as the “reserve price”, so you can avoid selling for less than required to settle a mortgage and other liens. But if you set a reserve and it isn’t met, your property may not sell.
    • Search online for reputable cash-house-buyers. I can’t begin giving you adequate advice on screen cash-house-buyers in one paragraph! But if you can find one, it can be a quick solution.
    • A reputable real-estate wholesaler can quickly arrange an as-is sale of a problem property for a reasonable fee. Wholesalers put together deals for a property in a short time (sometimes a week or two, sometimes only a few days) and take away a profit of usually of a few thousand, sometimes less than a real estate commission.
    • What about a do-it-yourself project – if you fixed and sold the house yourself, could you possibly realize more in the end? In all honesty, it is unlikely. There are high risks of unanticipated delays and unexpected costs that can run into the thousands. Flipping properties for fast sales is an arena fraught with peril for first-timers.

    There is a way out of an inherited house dilemma when you need to sell your house fast if you follow my recommendation to use reputable, seasoned professionals.  Before you make a final decision, contact us and get an honest assessment of your best options. 

  • 4 Pitfalls When You Need to Sell an Inherited House Fast

    My blog post “Top Strategies for Selling An Inherited House Fast” outlines the go-to options for a fast sale if you find an inherited house comes with burdens you don’t want to handle.  But don’t be in such a hurry that you charge right into disaster! Beware of these 4 pitfalls when you need to sell an inherited house fast.

    • Is the title clear?  The estate and/or yourself should pay the fee to do a title search. You must know what you are dealing with to be sure you make the right decisions about a sale.
      • Mortgages (first and second)
      • Property taxes
      • Liens
      • Inheritance divisions and/or squabbles
      • People living in the house, with or without a lease
    • Squattors – What, squattors??? You may be thinking “How could squattors be a problem? It was my late grandmother’s house with just a cousin living with her! Also my nephew moved in shortly after Grandma passed away.” Or perhaps there was an un-related caretaker who has not vacated? Anyone in occupancy, family or otherwise, with or without a lease or other agreement, almost certainly has legal rights that can compromise a sale.
    • Visible or hidden defects in the house can become high-cost issues when you try to sell. You may not have discovered them yet, but be assured a prospective buyer’s property inspection certainly will. Do your own due diligence on the property condition so you can make informed decisions.
    • You don’t know how to find reputable cash buyers to help you out of this mess, and you are frankly afraid of the auction process. Do some exploring with your local real estate professional’s organization to find recommendations for fix-and-flip buyers who will do an honest job.

    These are just 4 of the pitfalls that can cause the most grief when you need to sell an inherited house quickly. Get expert help and be informed so you can deal with the issues, not be run over by them!

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  • Can I Sell an Inherited House That Came with a Mortgage?

    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?

     

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