When your inheritance poses a significant concern

Inheritance is a blessing, a gift bequeathed to you by your loving parents or other family members. In many cases, it is given to extend financial support, or as a way of expressing gratitude.

People usually inherit money, books, antique furniture, jewelry, and assets like houses and properties. When you receive a Charlotte home as an inheritance, no matter how modest it is, you feel thankful that you are remembered.

But what if you happen to inherit a property with a mortgage? What if the property passed on to you is still being paid off?

Unfortunately, homes with mortgages take a long time to pay off, so it is unavoidable that the owner may die before the mortgage is fully paid.

Receiving a property still under a mortgage can be confusing and stressful. It poses its concerns and challenges. In such a circumstance, you may feel that the inheritance is more of a financial burden than a gift.

You can choose to look at it positively. In many ways, inheriting a mortgaged property is just like receiving one with no debt attached to it. You will have to transfer the property’s title and get a legal deed to establish ownership.

It’s just that for a mortgaged property, you have first to settle the debt attached to the property.

Managing relatives inheritance

When you receive a Charlotte home with a mortgage from a relative, your first step is to learn the original terms of the mortgage agreement. Doing this will help you know the remaining amount of debt owed to the lender. You can then decide if you want to keep the home or have it foreclosed.

The law gives you certain rights when you inherit a mortgaged home. The Garn-St. Germain Depository Institutions Act of 1982 allows you to keep the mortgage in your relative’s name, provided that you live in the house.

You don’t need to refinance the home mortgage. You just have keep the monthly mortgage payments and other payments associated with it.

Since you are paying for the remaining mortgage, notifying the lender is not a priority, but it must be done.

If you find the remaining mortgage too high for you to continue, or you are not interested in the property, you also have the option to foreclose it.

Managing non-relatives inheritance

If you happen to be the inheritor of a friend’s mortgaged property, you cannot assume the monthly payments. That right is reserved only for the relatives.

What you can do is learn how much mortgage must be paid off and make an arrangement with the lenders to fulfill the demand of the debt.

You also have the option to sell the property, or to foreclose it.

Whether you decide to accept the property or not is entirely up to you. Remember, when it comes to owning a home in Charlotte, you don’t just get the home, you also get the financial responsibility that comes with it. Property comes with tax payments, home maintenance, HOA fee (if the property is in a subdivision) and other lien payments attached to it.

Do you have any questions about your inherited property? We at Showcase Realty are ready to answer your questions and provide assistance.

Call us today at 704-997-3794. Look for me, Nancy Braun. I look forward to helping you.