Will abandoning a house left to us in a trust affect our credit?
My father passed away and left his house to us in a trust. He owes more on the house than we can get in this current market. None of us can afford to make the payments. Can we simply walk away and let the bank(s) have it? Would that effect our credit?
As beneficiaries of the trust, you have the ability to disclaim your interest by following specific state and federal laws that pertain to disclaiming or giving up your interest in the property that you would otherwise inherit. This will avoid complicating your own financial matters including your credit. Once all of the beneficiaries of the trust have renounced their interest, the trustee can then arrange with the bank to deed the property to the bank in lieu of foreclosure.
Stay Connected With Caring.com
Get news & tips via e-mail