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Is.there any benefits to the family if a family member passes and the house goes onto foreclosure rather than letting someone take

Over the payments and not allow the house to deteriorate? Can they somehow let it foreclose and prophet some other way? by kdharmon196971 from , California. Mar 9th 2017 Reply

William J Acres (William_Acres)
#75 ranked lender in Arizona - 8,726 contributions

More info needed, but in general, if someone passes then the heirs' can assume the existing mortgage.. this is allowable under federal law.. If you let the home go into foreclosure, then if the home sells at the foreclosure sale, and if it sells for more than the total encumberment, including all the foreclosure fees, then the remaining balance would go to the estate of the deceased.. If the home does not sell at sale, then it revert's back to the lender who holds the lien, and from that point, you wont get anything if the home sells, regardless of what it sells for. But if there is any equity at all, then your better off selling the home as the heir or trustee of the estate... you will get maximum value, and there are no foreclosure costs.. Another benefit to this is that in most instances, if you sell the home right after it's inherited, then it's possible there will be no taxes due on the net proceeds.. For more info, you should contact an estate attorney in your state and let him look at your complete scenario. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 10th 2017
Todd Glassman (Todd Glassman)
#1 ranked lender in South Carolina - 123 contributions

Depends on the equity situation. Need more info. If there is equity you may come out ahead retailing the property instead of letting it go into foreclosure for someone else to get the home at a discounted price at the foreclosure auction.

Mar 10th 2017
Larry Gray (lgray_312_247)
#594 ranked lender in California - 1,139 contributions

A pretty thorough response from William Acres, indeed. It sounds to me as if you are questioning whether there may be insufficient value to keep that house, catch up with and make payments.

Mar 11th 2017
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