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You inherited a $500,000 house.
Great.
Except:
- There is a mortgage.
- An old HELOC.
- Possible HOA balance.
- Maybe another recorded lien nobody remembers.
The real question isn't merely:
“What is the house worth?”
It is:
What is the net equity after valid obligations are resolved?
Title Work Matters
The title/escrow process can identify recorded matters affecting ownership and transfer.
Do not wait until the day before closing to start thinking about them.
Old Liens Can Be Messy
Sometimes a debt was paid years ago but the public record does not clearly reflect the release.
That can require research.
HOA Balances
If assessments have gone unpaid, the association may have collection rights or recorded claims depending on the circumstances.
Address the issue rather than ignoring it.
What If There Is Not Enough Equity?
If valid debts exceed or approach market value, the transaction can become more complicated.
Lisa's extensive short-sale experience may be especially valuable if mortgage debt creates a distressed-sale situation.
Legal and lender guidance may also be necessary.
Important
Inherited house plus liens? Liens belong to the title and escrow side of the transaction. See the Title, Escrow & Closing Resource Center and selling a house with a lien.
Property DNA Is Not a Title Policy
This distinction should appear throughout Lisa's site.
Property DNA may provide useful property information.
It does not replace:
- Formal title search.
- Title insurance.
- Legal advice.
