What are the heir’s obligations on underwater property? 1 Answers as of July 13, 2015

My father's estate is in probate. Title to his house has passed to me, my brother and sister. His house is underwater and we do not know what action to take. A short sale was not accepted. We can try to get a deed in lieu or have foreclosure. Mortgage company did not file a claim with the probate court and the estate is about to be closed. What action should we take and what are the financial implications to us? Are will liable for deficiencies, taxes, etc.? The mortgage has not been paid in 11 months. We all live across the country and do not live near my father's house. If the house is foreclosed on, do we have to clean it out?

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Your father got the mortgage on the home. If there is money in the estate the estate is responsible for paying the mortgage. If the estate is not able to pay the mortgage, the house will go into foreclosure. The beneficiaries of the estate are not liable for any debts your father incurred. If a beneficiary wants to save the house from foreclosure, then that person should make arrangements with the mortgage company to pay off the loan. Yes if the house is foreclosed on you will have to clean it out.
Answer Applies to: Florida
Replied: 7/13/2015
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