Have you have inherited a house? This may be an exciting time for you, if it is than congratulations! But sometimes the reality of inheriting a house may become a problem. The truth, however, is that you have inherited expenses along with the house. Well-intentioned loved ones all too often leave their property in their will to beneficiaries that are already struggling to afford their monthly bills. In many cases, these homes may be out of state or a different part of the state where you currently live. Often, these homes are in a severe state of distress and require a great deal of upfront cash flow for rehabilitation to turn into a desirable property.
Maybe you already have your dream home and have no interest in residing in the property but feel a sentimental attachment. While it is understandable, you will still have to face the reality of carrying the cost of an inherited house. Many times the added cost of owning a second home leads to the ultimate decision to sell the property. Before you make a decision, make sure you know the true costs involved. An excellent place to begin managing your inheritance is locating the contact and payment details on existing expenses.
We’ve gathered a list of typical monthly payments to help you with a starting point. Read on to learn about all of the costs of holding onto an inherited house in Tucson.
Property taxes will still be due on the property when you hold onto an inherited house in Tucson. These tax payments may or may not be a part of your monthly mortgage payment. Even if the mortgage is free and clear, annual property taxes will always be due. They will likely rise significantly because tax collectors will reassess the rate at the current market value. When a property changes hands, like during probate, it can raise a flag to the assessor to reevaluate the property’s value and may raise the taxes due.
Depending on the amount remaining on any mortgage, you may be responsible for mortgage insurance and property insurance while holding onto an inherited house in Tucson.
Assumption of Mortgage
Often, you can assume the mortgage if you hold onto an inherited house in Tucson. The wording of the original contract may be the determining factor in your ability to assume the mortgage. If they had a reverse mortgage, you would need to pay the loan off to keep the property.
While you are not necessarily obligated to pay the utility bills under the name of the deceased, if you’ll be residing in an inherited house in Tucson, you will want to keep the payments timely. Otherwise, they would become a lien on the property and taken out of the profits when sold.
If you are going to maintain ownership of the property, you may want to consider getting a professional inspection done to fully understand what you are getting into. Depending on the length of time that the house has been vacant and the state of repair the property is in, holding onto an inherited house in Tucson could become extremely expensive to maintain. Monthly expenses for repairs on older properties can easily equal or exceed mortgage payments.
You can usually tell which homes are vacant because the yard has become tangled and unmanaged, adding to the distressed appearance. An empty house may also attract illegal activity. You will want to ensure that the yard is appropriately maintained when holding onto an inherited house in Tucson or anywhere else.
Unless you have a plan for the property, holding onto an inherited house in Tucson is costing you money. AZ Problem Solvers, LLC will pay you a great price and close when you are ready. If you don’t feel that you can handle the emotions of going through the possessions of your loved one to clean out the property, you can leave everything in place or take what you like, AZ Problem Solvers, LLC will handle the rest for you. Call AZ Problem Solvers, LLC at (520) 312-0417 or send us a message today!