So, you have inherited a house. While this may sound exciting (and can come with benefits), other times, the reality is less than a pleasure. The truth 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 who are already struggling to afford their monthly bills. Often, these homes are in a severe state of distress and require a great deal of upfront cash flow to rehabilitate and turn into a desirable property.
Deciding what to do with an inherited house can be overwhelming. Perhaps you already are residing in your dream home and have no interest in moving into the property but at the same time you feel a sentimental attachment to it. While it is understandable, the value of sentimentality won’t pay for the reality of carrying the cost of an inherited house. This harsh truth often leads to the ultimate decision to sell the property. Whatever you decide to do, don’t delay in caring for the property. A great place to begin is by locating the contacts 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 Portland.
Taxes
Property taxes will still be due on the property when you hold onto an inherited house in Portland. 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.
Insurance
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 Portland.
Assumption of Mortgage
Often, you can assume the mortgage if you hold onto an inherited house in Portland, meaning that you would take over monthly payments and pay the remaining debt according to the original loan terms. The wording of the original contract may be the determining factor in your ability to assume the mortgage. Some other loans, for example a reverse mortgage, may specify that unpaid balance is due on sale or when the original mortgagor passes, in which case you would need to pay the loan off in order to keep the property.
Utilities
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 Portland, you will want to keep the payments timely. Otherwise, there would be a lien on the property and they will be taken out of the profits when sold.
Maintenance
Should you be considering maintaining ownership of the property, it is advisable to have a professional inspection done early to fully understand what you are getting into. Depending on the length of time that the house has been vacant and the condition of the property is in, holding onto an inherited house in Portland could become extremely expensive to maintain. Monthly expenses for improvements on older properties can easily equal or even exceed mortgage payments. For some, these responsibilities may make sense financially and they are willing to fix up the home and keep it. For others, these expenses are too large of a burden and it would be easier to sell the home as-is.
Yard
It is extremely easy to tell which homes are vacant simply by looking at their yards – they are usually overgrown and unruly, adding to the unsightly distressed jungle appearance. If you decide to hold onto an inherited house in Portland, you will need to ensure that the yard is appropriately maintained. Unless you have spare time, you need to consider hiring a landscaper to clean up and maintain your garden.
It can feel intimidating to deal with your newly inherited house. Getting professional help (a reputable attorney or accountant) can come in handy by understanding all of your options. While weighing your choices out, keep in mind that holding onto an inherited house in Portland will incur some expenses. For some there may be no pressure to sell as they have the time and resources to hold on and maintain the property themselves. Others might find their best option is to sell as this can provide cash and remove all financial and legal obligations of homeownership immediately.
If you decide to sell the property, bear in mind that it might take time to prepare the house for sale. Sometimes there can be a lifetime of objects and artifacts crammed into every drawer and shelf in the house, basement, attic, garage, and shed. 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, SCAL Real Estate LLC can help you make the entire process a little easier. We will make you a no-obligation fair cash offer with the closing date of your choosing. You can take whatever you want from the house and leave everything else in place and we will handle the rest for you. Call us at (971) 238-2255 or send us a message today to discuss this option!