Your Options After Inheriting A Home With A Lien On It

It can be a mixed blessing to inherit a home from a loved one. You may choose to sell it immediately, or at some point in the future, and that could leave you with a tidy sum of money. Before selling the property, there may be many issues you have to address. If there is a home loan, you will need to continue paying it. You must also keep insurance and taxes current to make sure the property remains secure. After making the decision to sell, you will have to determine whether to sell it as it is, or make repairs on it to get a better price.

So, what can you do if you inherit a home with a lien on it? Below, our St. Petersburg probate and trust administration lawyer explains more.

What is a Lien on a Home? 

A lien on a home is a legal claim on the property to satisfy an unpaid debt. Essentially, if you owe someone money and do not pay it, they can have a lien placed on your home. If you wish to sell the home, you may have to first have the lien removed, although this is not always the case. Some types of liens, such as mortgages, are voluntary. However, other types such as construction liens, are involuntarily liens.

Unlike other types of debt, liens on real estate do not disappear if the property owner passes away. This means that if you inherited a home with a lien on it, it is your responsibility.

Your Options if an Inherited Home has a Lien 

Before moving forward, you should first determine if the lien on the home is valid. It may not be if the debt has been paid off. If the lien is valid, you should then determine how much must be repaid to remove the lien. If the amount is very small, you may choose to pay it off and have the lien removed. You may not be able to repay the lien if the amount of debt is very high.

You may be able to refuse the inheritance if you cannot repay the lien. If the home has a contingent beneficiary, they would have rights to the property if you refused the inheritance. If there is no contingent beneficiary, you may be able to sell the home with the lien still on it, although this is often very challenging. If you are out of options, you may have to allow the mortgage lender to take the home.

Our Probate and Trust Administration Lawyer in St. Petersburg Can Provide Sound Legal Advice 

Inheriting property is not always straightforward. If you have inherited a home with a lien on it, it is critical that you speak with a St. Petersburg probate and trust administration lawyer. At Legacy Protection Lawyers, we can outline your legal options and help you determine which one is right for you. Call us now at 727-471-5868 or contact us online to schedule a consultation and to learn more about how we can help.

Source:

m.flsenate.gov/Statutes/713.08