Okay, it’s time to join the kids and play “good news, bad news.” The good news is that you got a phone call from your great uncle’s attorney. You have an inheritance!
The bad news is that it’s a condo. In Florida. And he bought it in 2006. And it’s mortgaged to the hilt. Oh, yeah, with a sub-prime loan.
You can’t refinance; the place is worth about half of what’s owed. You don’t want to move to Florida. And rental income wouldn’t come close to cracking the nut on that home loan.You can’t afford this.
Are you stuck with the property?
Good news. You are not. In most states, an estate’s assets are sold off to repay creditors and anything left over is distributed according to the decedent’s will or state law if there isn’t a will. Unless you are listed as a co-borrower or co-signer on a loan, you as an heir cannot be held responsible for its repayment.
Bad news. We die.
Good news. Our debts die with us.
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(3 votes, average: 5 out of 5)
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hilarious. doesn’t apply to me but a good read anyway.