Inherited Property & Foreclosure in New York | Options to Save or Sell

Many heirs inherit a home only to realize there’s an unpaid mortgage, back taxes, or even an ongoing foreclosure process. If you’re in this situation, you’re not alone. Every year, thousands of New Yorkers face inherited home foreclosure. The key is acting fast to explore your options before losing the property and any potential equity.

1. Understanding the Mortgage Responsibility on an Inherited Home

When you inherit a property, you also inherit its financial obligations. If there’s a mortgage or unpaid debt, the lender can continue or start foreclosure if payments are missed. According to Consumer Financial Protection Bureau (CFPB), heirs have the right to assume a mortgage and negotiate new terms, but many don’t realize this before foreclosure begins.

2. Can You Stop Foreclosure on an Inherited Property?

Yes! You have several options:

Loan Reinstatement: Pay the past-due amount to bring the mortgage current.
Loan Modification: Request lower payments to make the mortgage manageable.
Probate Court Intervention: If ownership is not fully transferred, probate can delay foreclosure.
Bankruptcy: As a last resort, filing Chapter 13 can provide more time to find a solution.

3. Selling an Inherited Property Before Foreclosure

If keeping the home isn’t feasible, selling before foreclosure can protect you from legal issues and maximize your financial return. A direct cash sale offers benefits such as:
✔ Avoiding foreclosure on your credit record
✔ Skipping probate delays if the property is eligible for expedited sales
✔ Receiving cash quickly to settle debts and distribute inheritance

Learn about foreclosure alternatives at New York State Homes & Community Renewal.

4. What If Multiple Heirs Are Involved?

When multiple heirs inherit a home, disagreements can lead to delays—and foreclosure doesn’t wait. If co-heirs can’t agree, options include:
✔ Selling and dividing proceeds fairly
✔ One heir buying out the others
✔ Using mediation to settle disputes before foreclosure progresses

5. Don’t Wait—Act Now to Protect Your Inheritance

If you’ve inherited a home that’s already in foreclosure or at risk, don’t delay. Every day lost could cost you equity and legal options. Expert Land Sellers specializes in helping heirs stop foreclosure and sell quickly if needed. Contact us today to discuss your best solution.

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