Beware. Appraisals are inherently influenced by the purpose for the appraisal. Trustees got 3 appraisals hundreds of thousands of dollars off market value. My appraisal, 3 real estate brokers, tax assessment, all in same ballpark not even close to trustee deceptive figures.
Hi @u2b608! That’s a great question and I’m so glad you asked it!! Being I don’t know the details of your situation I’m going to ask questions and provide an answer that gives a general idea of how one may manage inheriting a home with a mortgage. When you ask “after it is sold” are you asking about selling the home to the sibling, or are you asking about selling the home to the public? Because this particular video is about one sibling wanting to keep the property, I’ll reply with this assumption. First, I would ask: How is title held? Is the property in a trust? Are you going through probate? Generally speaking, when a property transfers from one person or entity (an entity could be a trust, an LLC, a corporation, etc.) to another person or entity, all liens must be paid. A lien would be taxes, utilities, mechanics liens (from Contractors), and mortgages. **I should asterisk this paragraph because there are exceptions and creative options that may be available to you** Next, I would ask: What type of mortgage is it? If it is a reverse mortgage, you will have a very short window to pay off the loan (usually less than 6 months). Most of the time we see heirs do this by selling the property, but sometimes an heir will use savings or obtain a new loan to pay off the existing reverse mortgage. If it is not a reverse mortgage, it may be possible for an heir to assume the existing loan. If the interest rate on the existing mortgage is lower than what one could get by applying for a new loan, this would be ideal! If you’d like to talk more about how to do this, please give us a call: (916)205-3881 Next, I would ask: How would the property be used? Would it become your primary residence? Would you rent it? I’d ask this question to understand how long you’d intend to keep the property and what financing options may be available to you, should you need to obtain a new loan. Thank you, again, for your question! I hope my questions and answers give you a bit of direction. If you’d like to chat offline, please give Jim and me a call: (916)205-3881. We are happiest when someone calls to ask a question and we can guide them!
What to do when one sibling didn’t help with anything. Even with care of, parent. Other siblings paid for taxes, insurance, getting house fixed up paid over 300k. Cleaned out everything. Split everything else evenly. Sibling has lived there with parents. The sibling said, didn’t want the house and now is saying, they want to be bought out. Very sick about this.
The one sibling that has been living there has been paying the taxes, insurance, up keep and getting a new furnace air conditioner that broke and paying for cleaning out the 50 years of, stuff. Getting house up to electric code with the city as well.
@@QuaschnickGroup Unfortunately, IL and cook county. 🫣. We have all receipts and witnesses to back us up. We know that having witnesses might, not make a difference. Wondering to give a lil something just to make it right? Don’t have a lot to give. Many (everybody) said, give nothing. We don’t want this to ruin a family. Even though, it already has. She has money. It’s sad. I would rather struggle to make ends meet and have our parents back here and healthy. Life doesn’t work that way. Thank you for, your advice.
It depends on the situation and what the goal is. If there is enough equity in the property, it may be possible to keep the existing mortgage and do some kind of an equity line of credit, inheritance advance, or probate loan. Or, it may be possible to do a cash-out refinance, at which time the existing mortgage would be paid off. The existing mortgage lender and any new lender will also want to know the plan... is the property in a trust or going through probate, will you be selling the property, renting it, will an heir move in? This will also determine the type of loan that is available.
@@QuaschnickGroup it’s an inherited rental property that was in a trust. Father passed away Jan 2024. Existing loan is 140K. Property appraisal at 1.03M. I’m borrowing 350K to buy my sibling out. Can you foresee any problem with this situation? Will I still need to pay the remaining balance when refinancing?
@@lapu1602 Is your new loan also paying off the existing $140k loan? What will you do with the property once you buyout your sibling? Will it remain as a rental? Is there a tenant in place? Will the tenant remain? Will the property be cash-flow positive after paying mortgage and any other carrying costs (utilities, property taxes, insurance, etc.)? Also, is the property in California? I'm familiar with California property taxes and how you may be impacted however, I'm not so familiar with other states. Do you know what your father's tax basis was on the property? ***PLEASE DO NOT FEEL LIKE YOU NEED TO ANSWER THESE QUESTIONS IN A PUBLIC THREAD*** We can always talk off-line: (916)205-3881. I'm more than happy to talk this through with you to see what options you may have available to you. Also, I'm very sorry to hear of your dad's passing and pray his memory is a blessing.
@@QuaschnickGroup the new loan will include the 140K. The property is cash flow positive with the new loan after all expenses. Yes it is in CA and tax basis is 70k which is irrelevant due to step up in basis .
Yes it will remain as a rental. I will be living in one side of it. My main question is if and when I buy my sibling out for his portion, will he be subject to cap gains tax above his half of the appraisal amount?
You all don’t get nothing cause you all tryed to kill me for this house I never knew about see you in court you get nothing
@theresalee1078 Sounds like you may be going through a difficult time. Is this regarding a property in California?
Sounds like your parents used an Estate Planner instead of Traditional Lawyer who defends vulnerable family members and special needs children.
Thanks
Beware. Appraisals are inherently influenced by the purpose for the appraisal. Trustees got 3 appraisals hundreds of thousands of dollars off market value. My appraisal, 3 real estate brokers, tax assessment, all in same ballpark not even close to trustee deceptive figures.
What if there is a mortgage? How do the two siblings manage that after it is sold?
Hi @u2b608! That’s a great question and I’m so glad you asked it!! Being I don’t know the details of your situation I’m going to ask questions and provide an answer that gives a general idea of how one may manage inheriting a home with a mortgage.
When you ask “after it is sold” are you asking about selling the home to the sibling, or are you asking about selling the home to the public? Because this particular video is about one sibling wanting to keep the property, I’ll reply with this assumption.
First, I would ask: How is title held? Is the property in a trust? Are you going through probate? Generally speaking, when a property transfers from one person or entity (an entity could be a trust, an LLC, a corporation, etc.) to another person or entity, all liens must be paid. A lien would be taxes, utilities, mechanics liens (from Contractors), and mortgages. **I should asterisk this paragraph because there are exceptions and creative options that may be available to you**
Next, I would ask: What type of mortgage is it? If it is a reverse mortgage, you will have a very short window to pay off the loan (usually less than 6 months). Most of the time we see heirs do this by selling the property, but sometimes an heir will use savings or obtain a new loan to pay off the existing reverse mortgage.
If it is not a reverse mortgage, it may be possible for an heir to assume the existing loan. If the interest rate on the existing mortgage is lower than what one could get by applying for a new loan, this would be ideal! If you’d like to talk more about how to do this, please give us a call: (916)205-3881
Next, I would ask: How would the property be used? Would it become your primary residence? Would you rent it? I’d ask this question to understand how long you’d intend to keep the property and what financing options may be available to you, should you need to obtain a new loan.
Thank you, again, for your question! I hope my questions and answers give you a bit of direction. If you’d like to chat offline, please give Jim and me a call: (916)205-3881. We are happiest when someone calls to ask a question and we can guide them!
What to do when one sibling didn’t help with anything. Even with care of, parent. Other siblings paid for taxes, insurance, getting house fixed up paid over 300k. Cleaned out everything. Split everything else evenly. Sibling has lived there with parents. The sibling said, didn’t want the house and now is saying, they want to be bought out. Very sick about this.
Do you have an attorney that is helping with the estate? Is your sibling still living in the home?
The one sibling that has been living there has been paying the taxes, insurance, up keep and getting a new furnace air conditioner that broke and paying for cleaning out the 50 years of, stuff. Getting house up to electric code with the city as well.
It's important to keep good records of the expenses too. That will help with settling the estate. Where is the house (what city and state)?
@@QuaschnickGroup Unfortunately, IL and cook county. 🫣. We have all receipts and witnesses to back us up. We know that having witnesses might, not make a difference. Wondering to give a lil something just to make it right? Don’t have a lot to give. Many (everybody) said, give nothing. We don’t want this to ruin a family. Even though, it already has. She has money. It’s sad. I would rather struggle to make ends meet and have our parents back here and healthy. Life doesn’t work that way. Thank you for, your advice.
If there’s still mortgage on an inherited property, did you say the remaining mortgage has to be paid off before refinancing/cash out ?
It depends on the situation and what the goal is. If there is enough equity in the property, it may be possible to keep the existing mortgage and do some kind of an equity line of credit, inheritance advance, or probate loan. Or, it may be possible to do a cash-out refinance, at which time the existing mortgage would be paid off. The existing mortgage lender and any new lender will also want to know the plan... is the property in a trust or going through probate, will you be selling the property, renting it, will an heir move in? This will also determine the type of loan that is available.
@@QuaschnickGroup it’s an inherited rental property that was in a trust. Father passed away Jan 2024. Existing loan is 140K. Property appraisal at 1.03M. I’m borrowing 350K to buy my sibling out. Can you foresee any problem with this situation? Will I still need to pay the remaining balance when refinancing?
@@lapu1602 Is your new loan also paying off the existing $140k loan? What will you do with the property once you buyout your sibling? Will it remain as a rental? Is there a tenant in place? Will the tenant remain? Will the property be cash-flow positive after paying mortgage and any other carrying costs (utilities, property taxes, insurance, etc.)? Also, is the property in California? I'm familiar with California property taxes and how you may be impacted however, I'm not so familiar with other states. Do you know what your father's tax basis was on the property? ***PLEASE DO NOT FEEL LIKE YOU NEED TO ANSWER THESE QUESTIONS IN A PUBLIC THREAD*** We can always talk off-line: (916)205-3881. I'm more than happy to talk this through with you to see what options you may have available to you. Also, I'm very sorry to hear of your dad's passing and pray his memory is a blessing.
@@QuaschnickGroup the new loan will include the 140K. The property is cash flow positive with the new loan after all expenses. Yes it is in CA and tax basis is 70k which is irrelevant due to step up in basis .
Yes it will remain as a rental. I will be living in one side of it. My main question is if and when I buy my sibling out for his portion, will he be subject to cap gains tax above his half of the appraisal amount?
Do I need a lawyer to do a buy out?
It may depend on where the property is located. Is it in California?