Legal Question in Real Estate Law in Pennsylvania

I want to buy my grandmothers house. She passed away a few months ago and my dad and his 4 siblings are taking care of the house. What ever I buy the house for they are splitting.

What is the best option as far as financing that will help both parties out. They want to sell it for 70,000.

I want to buy it and convert it into a rental property. I currently own my own home with my wife. I dont have any money right now for a down payment as all of this came kind of sudden. However, I began to save up.

What steps should I be taking and what are the best financing options?


Asked on 1/09/11, 7:48 pm

1 Answer from Attorneys

Miriam Jacobson Retired from practice of law

First, your father and his siblings [and any other heirs] have to administer the estate. If there was no will, one or more of them may apply to be appointed by the register of wills as administrator, and if there was a will, it would have named an executor, who must also be appointed by the register of wills to fill the role of executor.

After debts, including taxes, have been paid on the estate, the owners under the will, or by law, if there was no will, may distribute the remaining estate assets according to the will or the law. If there are not sufficient liquid assets in the estate, the house may have to be sold.

If the house is still in the estate and did not need to be sold, it may be sold to you by your father and his siblings. If you were to seek a mortgage from a financial institutional lender, you would be required to make a larger down payment and pay a higher interest rate on an investment property than on your own residence.

If your father and his siblings are willing, they could give you the "financing", by your signing a note obligating you to pay the entire consideration plus interest over a period of years. You would also sign a mortgage to them on the house, as security for their loan to you. The mortgage should be recorded. A lawyer should be involved to properly document this.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

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Answered on 1/15/11, 8:15 am


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