Will a bank allow me to lowball on the price of a home I'm selling?My dad told me that when he's gone to "the other side" he's left me his home. I thought that was pretty sweet, seeing that he moved into the house 20 years ago and I figured it would be paid off within a few years. My stepmom however told me that with my dad's horrible financial planning, and... | |
I don't like to answer questions that have so many answers, but you don't have the whole story yet.
So, the original question you asked - the bank has no control over what price you ask for a house. They could care less if you sell for less than it's worth. However, and it's a BIG however, you have to be able to satisfy any mortgage that is owed on the house before the bank will transfer the title to a new owner. Generally when people sell a house they try to get more than is owed on it so they don't have to bring cash to closing.
Your dad is not leaving you a liability. If the house has no equity, the estate (and the executor of the estate) will settle the liability with the mortgage company and you don't end up with anything. So what happens to you is you either get something for nothing - or you don't.
Most of the times homes in estates are sold and money added to the estate for division amongst the heirs (certainly any home with an existing mortgage, no mortgage company is going to let an heir take over and hope they get paid). If the home is free & clear (no mortgage) it can be bequeathed like other property.
good luck!
If he still owed the full amount of the mortgage, there probably isn't any equity and you will not receive any loot as all of it would go to the lender. It sounds like you really didn't inherit anything. If you have no equity you might as well let the lender take a voluntary foreclosure. If there is equity in the home the estate should go through probate court before any assignment of the proceeds. Good Luck
Laws vary from state to state but I believe in most states, you would decide at the time of inheritance whether or not you wanted to take your father's home as part of your inheritance or let it go--there's a legal term for this but I forget what it is. If you decide you want the home, then you would be responsible for any liens against the property. But you would also have to qualify for your own mortgage with a lender.
You will find all of this out when your father passes away, but don't get your hopes up.
Also, are you sure you can trust your step-mother? I know people whose fathers remarried and the new wife wanted to deny any inheritance to the biological children.
No, they definitely won't be okay with it.
They want their money back. You're talking about a short-sale--and there are plenty of regulations and problems associated with those--which you will need to get information about before putting that place on the market.
You might be better off to take some of the equity in the house and make the repairs before putting it on the market. Research your local market, too--find out what sales have been like--and talk to a real estate agent about the prospects of selling the house and what your options are. If you short-sell, you won't GET any loot--there will be no profit for you to take.
sorry u miss informed.
what ever the house sells for goes to pay off
the mortgage, back taxes, selling costs.
u unless u actually have the title can only sell
it to cover mortgage CAuse the bank owns it Too.
they get PAID first.
go to library as u got more to learn.
What cash? The mortgage has to be paid off first and in probate before you even get it.
