I recently "inherited" my late husband's home (and mortgage). We have another home in another state (where I would prefer to live)

Asked by Annie, Ipswich, SD Tue Sep 7, 2010

can I rent out his and not get in trouble with his mortgage lender? I am currently making the payments but will have difficulty keeping this up. The market here is flooded (where isn't it) with foreclosures so I'm not sure I could sell it in the near future. My attorney said as long as I make the payments they can't really do anything since I was his wife and inherited the property (and mortgage) - is this correct?

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8
Carol Cei, Agent, Maple Glen, PA
Wed Sep 8, 2010
Hello, Annie,

I see that you are in SD, so I am NOT going to tell you how easy it would be to sell that home...I would have no clue being in PA.

I WILL tell you that there is a clause in the mortgage documents that states that the successors, heirs, etc. to a mortgage must continue to make payments or sell and pay it off. Therefore, I would follow the advice of your attorney. If you can rent it out, and carry your expense, do so. That may also create some tax benefits for you - but that is another discussion to be had with your attorney or an accountant.

Just remember...if you miss 2 payments, they will be sending out an appraiser to see if the place is occupied, etc. and then the loveletters will begin. Stay current and they will be happy to get your money every month without question.

Good Luck with all.

Carol Cei
ReMax Action Realty
215-643-9661
carolcei@remax.net
0 votes
Jennifer Day…, Agent, Phoenixville, PA
Wed Sep 8, 2010
Good Morning Annie,

I am not an attorney and therefore cannot give you legal advice. What I can tell you is I can see where the home is located, I know the area very well and homes are sellling there. In fact there are not many foreclosures at all in that particular area. Priced correctly it can sell without a problem. September is a good month to have a home listed, it tends to be much busier than August and in the area you are located prices for homes remain steady.

It is definately best to utilize your attorney's advice however just know that it would not be a difficult scenerio to get the home sold and help you realize a profit.

Jennifer Daywalt, Realtor
610-999-7693 Direct * 610-489-7355 Main Office
Sellinghomesjenn@aol.com
0 votes
Alexander Sh…, Agent, Huntingdon Valley, PA
Wed Sep 8, 2010
Hello Annie,

You have an option to accept or decline the inheritance. Unfortunately it is all or nothing option.
The other posts are giving good suggestions as well.

Alexander Shulzhenko

http://www.eRealtyFind.com
267 738 0886
Web Reference:  http://www.eRealtyFind.com
0 votes
Gerard Dunn, Agent, Chevy Chase, MD
Wed Sep 8, 2010
If you were a co-borrower on the property - you are responsible for the loan.

If you are NOT a co-borrower and inherited the property - your credit is not impacted if there are late payments.

If you can rent the property out with positive cash flow - do so. There are not any prohibitions against renting a property in this circumstance. The bank would prefer this to be a rental property than have it become delinquent.


You may have a chance at owner financing or private financing. If you can make a very large down payment - local banks may consider your loan.

Lot loans are NOT FannieMae or Freddie Mac. Most lot loans are portfolio loans and do not necessarily need to comply with Fannie/Freddie loan guidelines.

Good Luck!

Gerry Dunn
Associate Broker - 28 Years
gerry@MyPotomac.com

Licensed in Maryland, Virginia and D.C.

Web Reference: http://www.PotomacSecretAgent.com
0 votes
Renee Porsia, Agent, Newtown, PA
Wed Sep 8, 2010
Hi Annie,

If you have an attorney and he advised you then you should feel comfort in what he has told you. I am not an attorney but I would at the very least, have your attorney review the mortgage documents because lenders can have language contained within the documents that pertain to renting out the property.

Also, you could sell the place regardless if there are foreclosures around. As long as you hire a good Realtor and that Realtor prices the property to sell, it will sell. As long as the home receives enough to pay off the mortgage, you will be ahead of the game and if there is some money left over then you are really ahead of the game.

Good luck.

Renee Porsia
Associate Broker
RE/MAX Action Realty
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
http://www.reneeporsia.wordpress.com
SERVICING ALL OF PHILADELPHIA, BUCKS, MONTGOMERY COUNTIES AND NEW JERSEY
0 votes
Cheryl R. Su…, , Schwenksville, PA
Tue Sep 7, 2010
Sounds like you have a plan and a lawyer to back it up. Now off to renting the home. Where is it and when are you getting it read to rent?

-Cheryl Supplee

Cheryl R. Supplee, Realtor, e-PRO
Relocation Specialist, USAA certified, Cartus certified
Coldwell Banker Preferred
Village Square Shopping Center
686 DeKalb Pike, Suite 102
Blue Bell, Pa 19422
Homes for Sale
Direct: (610) 812-6575
Office: (215) 641-2727
eFax: (484) 971-5005
0 votes
Timothy Garr…, Agent, Philadelphia, PA
Tue Sep 7, 2010
Hi, Annie.

Please let me know where the property is located so that I can help you gain a better understanding of your options. To answer your first question, renting the home will not get you in trouble by your lender. My professional background is in the mortgage business, so I can elaborate further if you need more info.

Hope to hear from you soon.

Best,
Tim

Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant
http://www.phillyurbanliving.com

tgarrity@brownmckinney.com Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-519-5490 Fax
Web Reference:  http://brownmckinney.com/tim
0 votes
Ian A. Wolf, Agent, Morristown, NJ
Tue Sep 7, 2010
That sounds correct to me based on my practical experience. Typically, within the first year that you have a primary residence mortgage you are not supposed to rent it out, but after that you can do as you wish. I would definitely go by your attorney's advice since he is in a position to advise you in this area. Hope that helps.
0 votes
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