This is way off topic, but it seems that whatever the subject, there's good feedback to be had from the hive. I'm in a jam.
My dad and brother are both deceased, and I'm the sole heir. My dad owned a house that the two of them lived in, which they trashed. After their deaths, I'm the owner of a house that isn't worth the value of the reverse mortgage that was taken out by my dad. I tried to get the house sold, and the numbers just don't work. It is definitely worth less than the loan value plus a lien for about $4000 from the city for keeping up the yard.
An important detail is that while I've inherited the house, I did not sign the mortgage, so I'm hoping that if they foreclose, it will only be against the estate and will not affect my personal credit. Earlier this year I tried to do a deed in lieu of foreclosure, but the bank (HUD) refused to accept it. Then bank had paid the back taxes for a few years, and they were trying to make me reimburse them for those tax payments.
Any suggestions? I'm not going to make any money on this, I just don't want to spend thousands to get out of it. I spent a good portion of my life's assets on bailing the two of them out of jams, each time with a broken promise that I would be repaid. This is the last time, and all I want to do is walk away from it, both for financial reasons and my own mental health.
I don't think you can legally "inherit" someone else's debt if you didn't sign any of the paperwork.
Honestly, I'd grab whatever personal belongings you want to keep, call the bank and tell them that your father passed away and then walk away. Done deal.
CAinCA said:
I don't think you can legally "inherit" someone else's debt if you didn't sign any of the paperwork.
Honestly, I'd grab whatever personal belongings you want to keep, call the bank and tell them that your father passed away and then walk away. Done deal.
This. Check local laws etc but as long as this is an option and you don't have emotional ties I'd let it go.
I'm kind of in the same boat, but....
Basically, if there are any deficiencies, those go against the estate. If the estate doesn't have enough assets left to cover the liabilities, I believe it's a dead issue.
Either way, the estate needs to be liquidated. That will turn into your job.
Where's that meme picture of the young girl and the burning house behind her? JK!
Does the Estate have any assets? If so they will be used to pay the bank first, if not, its the banks problem not yours. You are not responsible for ANY debt, the Estate is.
https://reverse.mortgage/death
Steve_Jones said:
Does the Estate have any assets? If so they will be used to pay the bank first, if not, its the banks problem not yours. You are not responsible for ANY debt, the Estate is.
https://reverse.mortgage/death
Thanks for the link. I've apparently got zero liability, and the bank can accept the deed or foreclose against the estate.
In reply to Floating Doc (Forum Supporter) :
A lot of reverse mortgages have insurance against them, also. They really aren't a "screw your kids over" plan, so you should have no problems. The idea is you are upside down because they are slowly buying your house.
wake74
Reader
11/7/22 10:11 p.m.
Without going into the details, we consulted a lawyer at one point about this topic, to see if we could refuse to be the executor of an estate or have any involvement. We knew it was likely significantly underwater, and there were some harsh feelings involved. According to that lawyer, the answer was yes. You could absolutely decline any involvement, or be responsible for anyone else's mess.
