Property Inheritance Challenges and Solutions
When you inherit a property following a loved one’s passing, you can be left with quite the handful of real estate issues to sort through.
If a person dies without a will, and the deed does not expressly include joint tenancy with survivorship language, then issues may arise as to which persons have title to the property and in what percentages. Such property is often referred to as “heirship property.” It is essentially unsellable as it is, and a title company will not issue title insurance until heirship issues are addressed and resolved.
In many cases heirs are spread across the country and may have lost touch. Some heirs may not sign unless they are paid to do so – and financial issues between family members can get ugly.
– Potential heirs begin to surface out of nowhere (long lost relatives who want their share)
– Siblings from a previous marriage
– Incarcerated relatives
– Rumored homeless relatives that no one has heard from in years
– Reverse Mortgage on the property (may have approximately 6 months to resolve)
– Foreclosure in progress
– Upside-down mortgage
REAL ESTATE SOLUTIONS
Sell The Home Retail
The property can be listed on the MLS and sold to a wide retail audience if
– Home in reasonable condition that a bank would finance
– Only minor repairs needed
Sell To An Investor
An investor may purchase the property for approximately $.70 on the dollar if
– Just want to sell it and be done
– Home in poor condition
– In need of major repairs
– Behind on taxes
– Threat of foreclosure
– Heir can take up residence
– Rental property
No matter what real estate challenge you face from inheriting a house, it is always prudent to consult an attorney and a real estate professional early on in the process.
Disclamer: This article summarizes various internet sources on this topic and is not intended to be legal counsel. Please consult an attorney for specific information.
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