Any real estate guru's here?

[DroVal]

Have a question for anyone that knows real estate or who has been thru a similar situation.

My mother passed away recently and my father passed away 4 years ago. My to sisters and I are in the will and basically everything is to be divided up between us. The house I am currently living in was my parents home. There is no equity left in the house, they refinanced a few times. Currently the house is worth less than what is owned on it.

Now to my question. In cases like this does the house/mortgage fall to us 3 kids? Are we now responsible for it? If it forcloses does that affect us 3?

When the will was read by my mother's executor (her friend) she basically said that the 3 of us now own the house and that I should continue paying the mortgage on it so that it doesn't hurt us credit wise.

No matter which way things go, I know that we are losing the house. That is fine. What I am worried about is that financially I am in a bad spot and if I pay the mortgage I will only be able to do so for one more month. When the time comes that I have to be out of this house I need to have every penny I can get my hands on and paying the mortgage will hurt what little moving money I will have.

Anyway, I hope this made sense and if there is anyone that has been there or knows some of the legalities of these situations, I would really appreciate any info you can give me. If I can't figure this out on my own I will eat the consultation fee and seek legal advice, but was hoping to not have to spend the money if I don't have to. Have a good one all and thanks again!

DroVal

 

[clhyer]

State laws may differ, but here is my take if you were in Georgia.

Assuming that your parents were the only people to have signed the promissory notes and deed to secure debt - then your credit will not be affected by a foreclosure of the property, you are not liable for the debt. On the other hand, if you and/or your sisters also signed the notes then you would be affected as you would have agreed to make the payment.

If probate is completed, ownership of the property is now in the three of you with each having an undivided 1/3 interest. If probate hasn't been completed, you might not take that last step, and just leave the property titled in your parents (estate).

You might go and talk to the local banker. If they are honest with you they might tell you something similar. In any event, if you are not liable for the loan then losing the property should not hurt your credit.

Good luck with it, sorry for your loss of your momma.
C

 

[Demonracer]

Find a "good" probate attorney who can answer your questions and possibly handle the situatrion for you. I had a similar situation a few years back and tried to handle it on my own. I took a bath on the real estate and ended up owing a lot more money than the whole thing was worth. My siblings bailed and left me holding the bag. Guess what happened then...it wasn't pretty.

 

[DroVal]

Thanks Demon and clhyer. Will get together with a lawyer and see what I can figure out.

 

[Coyote Jack]

You might want to check and see if the loans were life insured. If they were then the debt died at the same time as your mother or father. Most loans of any size are life insured.

My condolences for your loss.

Jack

 

[Oklacarcollecto]

Find a "good" probate attorney who can answer your questions and possibly handle the situatrion for you. I had a similar situation a few years back and tried to handle it on my own. I took a bath on the real estate and ended up owing a lot more money than the whole thing was worth. My siblings bailed and left me holding the bag. Guess what happened then...it wasn't pretty.

You might want to check and see if the loans were life insured. If they were then the debt died at the same time as your mother or father. Most loans of any size are life insured.

My condolences for your loss.

Jack

Two great pieces of advise. Laws vary state to state. Armchair attorneys are just likely to cost you a lot more money in the end.