Inheriting a mortgaged property

[Anonymous]

They want her yo keep it so the estate doesn’t loose money taking it on and selling it.

[Anonymous]

Anonymous wrote:They want her yo keep it so the estate doesn’t loose money taking it on and selling it.

It depends on the logistics.

I assume the mortgage is greater than the "We Buy Houses" people price, so a traditional sale and its attendant commission is on hand.

If the friend can unload the condo at no cost to the rest of the estate and keep a few grand from the sale, I don't see why the family would object so much or even care.

If the friend giving the condo back to the estate (refusing an inheritance means it just goes to the next of kin) means that some cousin's inheritance goes from $5,000 to $0, I can see why the rest of the family might object to this. If it means the cousin's inheritance goes from $350,000 to $345,000, I can still see why the family might object but they've got less room to object.

Of course this is the perfect junction of:
1) Younger folks needing a place to live can't afford the mortgage.
2) Older more established folks don't care.
3) Someone near retirement may not want THAT condo.
4) Someone wanting an investment property may not want THAT condo.

Your friend should see an attorney.

[Anonymous]

I was in a similar situation 3 yrs ago.

My mom had bought a condo near me, then unexpectedly passed away 2.5 yrs after the purchase. I was the executor of her estate and inherited the condo. The first thing I did was talking to my realtor. He advised that most of the payments in the initial years go toward interests. I did not want to hold onto it as a rental as I was over extended already. We ended up selling it at slightly below the purchase price. After all the cost and fees, I still netted some money b/c mom had put down 20%.

[Anonymous]

As others have said, unless there is guaranteed equity (and consider HOA and other costs between acceptance of inheritance and sale close) then she should disclaim the inheritance. Easy peasy. Then move on. The "other members of the family want her to keep it" is a BS, childish shiny object. Who gives a damn. They want her to take on an expense? Who cares if they do? Be an adult and make the right decision for you and your kid. The issue here isn't the family putting pressure on her, it is her apparent inability to be an adult.

[Anonymous]

Anonymous wrote:They want her yo keep it so the estate doesn’t loose money taking it on and selling it.

So they want her to lose money so they don't lose money? Lovely.

It sounds like she has an easy legal solution (disclaim the inheritance) and a thornier relationship problem (her relatives are greedy jackasses).

[Anonymous]

We sold and moved on.