If I’m buying an estate home who gets the extra money when I borrow more money than what the house is selling for?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I’m buying an estate home who gets the extra money when I borrow more money than what the house is selling for?

I’m buying mother-in-law’s house. The executor is selling it to me but the money will get split 4 ways to children. There will be extra money, does that come to me?

Asked on October 17, 2018 under Estate Planning, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you get a loan for more than you need, you would keep the surplus (but of course, you have to repay it as per the terms of the loan, with interest presumably--you are likely better off borrowing less and not have a surplus you have to repay with interest). The estate has nothing to do with the transaction between you and your lender. The estate gets only the money paid to  the estate for the house, which is then divided among the heirs. So (example) if you get a loan for $250k but pay the estate $225, the other $25k goes to you, subject to the terms of the loan.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption