Legal Question in Real Estate Law in Arizona
I have inherited a home with a mortgage on it. The loan has not been changed to my name as of yet. I can not afford the current payments and due to filing for bankruptcy 18 months ago I dont think I will be able to refinance the loan. The house has been up for sale for almost 5 years now, the price is low enough to cover the loan so I will break even without making profit. How can I turn the house over to the bank without damaging my credit further?
1 Answer from Attorneys
The loan is not your loan, therefore, if you default or just walk away from the house, your credit should not be damaged, not now and not later. You may be the owner of the house, by virtue of the inheritance, but you are not obligated to accept the gift, nor are you obligated on the mortgage loan. You should be very careful with any dealings with the mortgage lender, so as not to incur any liability under these circumstances. You may have the ability to buy the house from the bank or buy it at a foreclosure sale for a price far less than what is currently owed to the lender. You should get some professional legal and real estate advice before you decide what to do with the house.
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