I Inherited a House and Want to Sell It: Follow These 10 Steps
Inheriting a house can be a daunting prospect. Maybe the house you inherited stirs up unpleasant memories. Or perhaps you love the house, but you can’t afford to pay the outstanding mortgage. Or maybe you inherited the house along with siblings or other relatives and need to sell and split the money.
The process of selling an inherited home is complex, including an array of financial, legal, and market ramifications. To help untangle these complexities, we spoke with probate attorneys and a top-performing real estate agent to bring you these 10 essential steps for selling an inherited house.
1. Know where the mortgage stands
As the new owner of the house, you must fully understand the status of the mortgage. To surface liens or judgments attached to the property, such as unpaid taxes, a home equity line of credit, or a reverse mortgage, you should run a title search. This will determine your next steps and whether or not you need to address any issues with the title.
As the new owner, you’re now in charge of the mortgage payments. “If the mortgage holder was behind on mortgage payments, it is imperative to make the account current as soon as possible,” explains Somita Basu, an estate planning and probate attorney based in the San Francisco Bay Area.
“Time is of the essence where mortgage issues are concerned,” Basu cautions, so reach out to the mortgage company and any owed creditors as soon as you have the appropriate documents that show you are in charge of the estate or trust.
