So, you have inherited a house, while this may sound exciting, the reality is less than a pleasure. The truth, however, is that you have inherited expenses along with the house. Well-intentioned loved ones all too often leave their property in their will to beneficiaries that are already struggling to afford their monthly bills. Often, these homes are in a severe state of distress and require a great deal of upfront cash flow for rehabilitation to turn into a desirable property.
Perhaps you already have your dream home and have no interest in residing in the property but feel a sentimental attachment. While it is understandable, the value of sentimentality won’t pay for the reality of carrying the cost of an inherited house. This harsh reality often leads to the ultimate decision to sell the property. Whatever you decide to do, don’t delay in caring for the property. An excellent place to begin managing your inheritance is locating the contact and payment details on existing expenses.
We’ve gathered a list of typical monthly payments to help you with a starting point. Read on to learn about all of the costs of holding onto an inherited house in Chicago.
Property taxes will still be due on the property when you hold onto an inherited house in Chicago. These tax payments may or may not be a part of your monthly mortgage payment. Even if the mortgage is free and clear, annual property taxes will always be due. They will likely rise significantly because tax collectors will reassess the rate at the current market value.
Depending on the amount remaining on any mortgage, you may be responsible for mortgage insurance and property insurance while holding onto an inherited house in Chicago.
Assumption of Mortgage
Often, you can assume the mortgage if you hold onto an inherited house in Chicago. The wording of the original contract may be the determining factor in your ability to assume the mortgage. If they had a reverse mortgage, you would need to pay the loan off to keep the property.
While you are not necessarily obligated to pay the utility bills under the name of the deceased, if you’ll be residing in an inherited house in Chicago, you will want to keep the payments timely. Otherwise, they would become a lien on the property and taken out of the profits when sold.
Should you be considering maintaining ownership of the property, it would be advisable to have a professional inspection done to understand what you are getting into fully. Depending on the length of time that the house has been vacant and the state of repair the property is in, holding onto an inherited house in Chicago could become extremely expensive to maintain. Monthly expenses for repairs on older properties can easily equal or exceed mortgage payments.
It is often effortless to tell which homes are vacant because the yard has become tangled and unmanaged, adding to the distressed appearance. Unless you have spare time, you will need to ensure that the yard is appropriately maintained when holding onto an inherited house in Chicago.
Unless you have a plan for the property, holding onto an inherited house in Chicago is costing you money. Property People LLC will pay you a great price and close when you are ready. If you don’t feel that you can handle the emotions of going through the possessions of your loved one to clean out the property, you can leave everything in place or take what you like, Property People LLC will handle the rest for you. Call Property People LLC at (312) 857-8572 or send us a message today!