How do I short sell an inherited house? 3 Answers as of April 20, 2012

My father passed away and I am the only person set to inherit his assets (he has a will). Currently the estate is in probate. upon completetion of the probate process (where it is more or less certain that I will inherit his house and bank accounts) I would liketo short sale his house (it is 30k underwater) as I cannot afford to pay the mortgage. I am trying to make sure that short selling the house wil not affect my credit, nor will I be personally liable (only the estate would correct?) for any of the difference between sale price and amount owed. It is my understanding that when I inherit the house I am not inheriting the mortgage- that I would have to refinance in my name in order to do so and therefore my credit would be unaffected correct? Thank you.

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Law Office of Robert J. Slotkin | Robert J. Slotkin
Don't refinance, otherwise it will affect your credit. Only if you decide to keep the house should you take title and refinance. If you are simply going to short-sell and are willing to waive your rights in the house, the estate lawyer can ask the judge permission to abandon the residence and just give it back to the bank.
Answer Applies to: Florida
Replied: 4/20/2012
The Law Offices of Laurie E. Ohall, P.A.
The Law Offices of Laurie E. Ohall, P.A. | Laurie E. Ohall
You are correct, you only inherit the property, not the mortgage and therefore, you should not be responsible for any deficiency judgment. However, you should talk to your probate attorney about the fact that you either want to short sale the house or walk away from it. Your attorney may be able to help you negotiate a personal representative's deed in lieu of foreclosure with the mortgage company. If not, then you want to find a real estate agent who is knowledgeable in short sales and can help you through the process because it is quite a lengthy "process".
Answer Applies to: Florida
Replied: 4/19/2012
Francine R. Martin P.A.
Francine R. Martin P.A. | Francine R. Martin
My question is, why do you want to inherit a house that is worth less than is owed on it? You may want to consider disclaiming your interest in the house, and just let it go. This would not affect your credit.
Answer Applies to: Florida
Replied: 4/19/2012
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