If she isn't going to live in it or want to rent it out, it makes no sense to keep it. If a relative wants it, she should transfer or sell the property to them.

Has she looked to see if refinancing now would make it affordable? Rates have dropped since 2019 so it may not be as difficult

Why the heck are her relatives pressuring her to keep it if there's little or no equity and it could likely become a big hassle for her to manage, even if she decides to sell it right away? Are they afraid that if she declines the inheritance, that the entire estate will be worth less because the estate will have to eat any carrying costs, etc.?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sell

it was purchased a year ago, there may or may not be any equity at all

If it was bought with 0% down she can decline the inheritance. I don't think there's any reason to believe that's the case, though.

10% down is common, between any downturn in the condo market in her city, fees, and commissions you could easily look at break even or very slight profit

Anonymous wrote:

Anonymous wrote:Sell

it was purchased a year ago, there may or may not be any equity at all

If it was bought with 0% down she can decline the inheritance. I don't think there's any reason to believe that's the case, though.

I think she can decline and then it would be the executor’s job to sell it.

Anonymous wrote:Just sell it. Those who aren’t even contributing financially get no say.

+1 I don't know why her relatives have an opinion. If it was bought in 2019 it's not like they have memories of visiting growing up!

Anonymous wrote:Sell

it was purchased a year ago, there may or may not be any equity at all

I think she can disclaim it if she doesn’t want it. No one can force you to inherit something.

So for instance, if it’s unlikely getting a tenant would make it worthwhile to hold onto as an investment property and it’s such a new purchase that realtor fees may eat up any equity in the condo, then I would tell the estate no thank you. I personally don’t want to be a landlord and would not want to inherit a condo during a pandemic (it’s a renters’ market right now in most cities). The fact it’s a new purchase with a sizeable mortgage makes me think the juice might not be worth the squeeze in inheriting then selling it. What is your friend can’t sell it right away and ends up with sizable carrying costs?

I get the Aunt was trying to be nice, but what a mess. She should talk with an estate attorney.

Just sell it. Those who aren’t even contributing financially get no say.

Sell

if there is little to no equity (i.e. not enough to make a sale profitable), she can decline the inheritance

Who knows? Depends on lots of factors.
Can it be refinanced, how much equity is there? What is market like for selling or renting, might she want to live there eventually, etc.

SHould it not be sold to pay off the mortgage?

A friend of mine recently found out that she is inheriting a condo from her aunt. The condo was purchased in the summer of 2019 and has a sizeable mortgage on it.  

My friend is a widow and single mother of an 8yo.  She owns the SFH she bought with her late husband and doesn't want to move. It fits her and her 8yo daughter's life. (Condo is in the same city where she currently lives.) She's about two years away from paying off the mortgage on that house. 

PITI + HOA fees on the condo also exceed the current rental rate for similar units in the building. Aunt Larla clearly had good intentions and planned to live a lot longer, but in the near term (and possibly long term too), this just seems like a giant albatross. The aunt passed away quite suddenly, and it sounds like the estate is a mess. My friend is getting a lot of pressure from her family just to take on the mortgage/expenses.

I've suggested that she speak to a real estate atty immediately. Has anyone been in this situation before? What would you do?