Inheriting property from a loved one is always a delight even though they are gone what is left behind is always valued even in those hard emotional times. However, there are instances when an inherited house can be in foreclosure.
Foreclosure means that the house was mortgaged and since the mortgage payments have not been paid, then the house is in the process of being possessed. This period can be confusing for you because it probably is your first time to inherit a house on foreclosure.
Moreover, it could be because of the emotional distress you could be undergoing after losing a loved one. So what should you do with an inherited house that is on foreclosure? Here is what you should do.
Transfer The Title
First, you need to find out how the title is held so that you can transfer the title to your name. There are four different ways through which a title can be held. These are; sole title, tenants in common, tenancy by the entirety and joint tenancy. For the first two cases, the title will need to be transferred to your name.
You will need proof of inheritance through a will or a trust that states who get the property for the transfer to happen successfully. This is taken to the probate court where you will get the approval of the judge to transfer the title.
Find How Much Is Owed
Sometimes the owed amount might be more than the current market price of the house meaning that even after selling the house you cannot make enough to repay the mortgage. In such a case it is best not to inherit the house.
Those investors are seeking for inheritance leads for foreclosed homes who purchase such houses and resell them later. If the amount owed is less than the market value of the house, then it is time to save the house from foreclosure.
Related: How Do I Get a Copy of The Deed to My Property in Florida?
Find Out If A Case Has Been Filed
Before a house can be put in foreclosure, a case has to be filed. Look for the words ‘Lis Pendens’, meaning a foreclosure case has been filed on that day. It’s a way to check if a case has been filed. If you do not find these words, then no case has been filed.
If a case has been filed, then you should try to reinstate the mortgage or pay it off. They will only allow you to reinstate the mortgage if you have a title for the house. If a case has not been filed, it doesn’t mean that you should sit pretty.
You can prevent the case from being filed by having the mortgage payments back on track and taking up the responsibilities to pay them off. You should also hold the case from being filed by showing that you will repay the mortgage when you sell the home. You must first get the approval from the probate court to be the executor of the sale.
If you are not conversant with all these processes and what is required, you can always get help from an experienced lawyer.
