If an inherited house goes into foreclosure, what happens to the beneficiaries’ credit reports?
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If an inherited house goes into foreclosure, what happens to the beneficiaries’ credit reports?
My mother left a house. We all agree to sell the house over a year ago. After being on the market well over a year we cannot sell it and we are using the money in her checking account to make the payment. The money is running out and we had one brother that does not want to rent the house again. If we let the house go back to the mortgage company will it affect our credit?
Asked on August 23, 2011 Texas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your situation. You did not mention something very important: has the house been transferred to your names or is it still in your Mother's name and is the estate the one making the payments on it? If the house has not been transferred and remains in the estate - and I do not mean to make trouble with your brother here - the executor has the right to do what is necessary to maintain the property in the event that you can not sell it. So the executor can rent it. If the house goes in to foreclosure prior to transfer then your names are not on anything so it can not effect your credit. But the executor needs to deal with the issue in the best possible way. A deed in lieu of foreclosure; rental; whatever. Get some guidance please. Good luck.
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