vettegirl

Inheriting house with mortgage?

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My in-laws both passed away within the past 12 months, leaving their home with approx $50k mortgage owed (property probably worth $150-$200K). My husband and his sister will inherit when it goes through probate, but the mortgage holder has no obligation to let them pay on the existing mortgage, do they? There is equity in the house, but our credit is crap and our home is in foreclosure for over 5 years now. DH's sister currently lives in the house, but is an unemployed single mom. I can't imagine the bank would extend credit to either of them.....any advice, insight or strategy is appreciated!

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With that kind of equity, you should be able to get some kind of loan.  However, the interest rates won't be great if you don't have good credit.  

 

One possibility is an FHA loan, they don't require as good credit.  

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What you want is called an asumption (adding somebody to the loan). 

 

Many banks will require the loan be brought current before that happens.

 

Since nobody can qualify for a new loan,  there are two options:

 

1st) do nothing and the bank will foreclose sometime in the future.  When the bank forecloses, you get nothing.

 

2nd) the only option you have that benefits you is sell the property yourself. That way you get you get the equirty.

 

 

 

:medusa:

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Probate needs to be started immediately and whoever is the executor needs to either take some of the liquid assets and make the mortgage current and/or get permission to sell the property ASAP.

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