What to do with underwater house as part of an estate?
August 7, 2012 12:58 PM Subscribe
Possible inherited underwater house in New York, what to do? Walkaway? Advice?
posted by bottlebrushtree to work & money (10 answers total) 1 user marked this as a favorite
My relative is the executor for their parent's estate. The estate is basically a small amount of cash and a house with a $500,000 mortgage. It's possibly underwater though it's a little unclear after talking to multiple real estate agents.
Besides the house related expenses (mortgage, property tax, ongoing maintenance) there are no other bills or debts )
The house has been refinanced multiple times in the last decade and there is a chance that the dead relative was taken advantage of. The relative believes they have most of the refinance paperwork. The mortgage is now held by OCWEN. There is about 500k left and the interest rate is 6.something %. Paperwork that they have shows some sleazy behavior on the side of the outside person who did the refinance.
They have had some advice by one of the realtors to have the estate "walk away" from the house but they are unclear about what they should do. They have an basic estate lawyer but he is not qualified for this type of question.
1) Who should they talk to in New York (eastern Suffolk county) regarding possible loan modifications or possibly a law suit involving the refinance company?
2) What would be involved in "walking away" as an executor of a estate.
3) Any other advice?
They wish to do the ethical thing as well as possible get value out of the estate if any is possible. They would rather not spend years of their life dealing with the estate.