Your Inherited Mortgage Has a Secret Rule

When you inherit a home with a mortgage, federal law provides significant protections. Here is a summary of what you need to know:

• Federal Protection: The Garn-St. Germain Act generally prevents lenders from forcing you to immediately pay off or requalify for the mortgage simply because you inherited the property as a relative.
• Your Primary Options: You have several choices, including formally assuming the loan to keep its original terms, refinancing it into a new loan that suits your financial needs, or selling the property to pay off the debt and retain the equity.
• Key Financial Steps: It is vital to communicate with the mortgage lender promptly to understand the process. You should also be aware of important tax benefits, such as the stepped-up basis, which can significantly reduce capital gains tax if you decide to sell the home.

Read the full blog article here: https://www.iqratemortgages.com/blog/inheriting-a-home-with-a-miami-mortgage-your-options