If you have ever found yourself in the situation of inheriting a home, you know that it is not a pleasant process. On the one hand, it implies a circumstance that we never want to go through: the loss of a loved one or close relative. And, on the other hand, although - a priori - inheriting a house can be beneficial, you should know that this is not always the case: with inheritances, in addition to goods, you receive obligations and also debts.

When it comes to housing, the most common debts are mortgages; therefore, if the property you inherit is mortgaged, you will have to assume the monthly loan payment.

What options do we have when inheriting a house with a mortgage

If you have inherited a home with a mortgage, you should evaluate which options you have and which is the most convenient for you. Accepting an automatic inheritance is not recommended, because if you are not aware of the deceased's debts, you could put at risk not only the inheritance but also your personal assets because you would have to assume the person's financial obligations.

Therefore, the first thing you should do when inheriting a house is to find out about the estate and the solvency of the deceased. If there is a mortgage on the house, you must evaluate a key aspect: the existence or not of a life insurance.

Existence of life insurance

As we mentioned, before proceeding with the acceptance of the inheritance it is important that you know if there is a life insurance linked to the mortgage. It is increasingly common for people to take out an insurance policy whose beneficiary is the bank with which the mortgage has been taken out. This way, in case of the owner's death, the insurance will pay the mortgage or amortize a part of it so that the heir does not have to pay.

In addition, there are also life insurance policies that are not linked to mortgages and in which case the beneficiary, which is not the bank, can decide whether to use the insurance money to pay the mortgage.

If there is no life insurance

If there is no mortgage-linked life insurance, the heir to a mortgaged home has three options:

1. ACCEPT THE INHERITANCE

If you accept the inheritance, then you will have to assume the payment of the mortgage of the house with the conditions that the previous holder has established. In this case you will have to take out the accounts well to determine if it is really worth doing it and if you can assume the debt. Keep in mind that the inherited wealth is merged with yours and, if necessary, you must respond to debts of the inheritance with your own property and not only with the inherited.

2. ACCEPTING THE INHERITANCE FOR THE BENEFITOF THE INVENTORY

This option also implies an acceptance of the inheritance, but not in its entirety as in the first case. Accepting the inheritance for the benefit of the inventory separates your personal assets from the inherited ones. However, to benefit from this resource, you only have 30 days to carry out the procedure.

3. WAIVE THE INHERITANCE

The law does not require the acceptance of an inheritance. So, if you evaluate the situation and conclude that you cannot afford the mortgage, you can refuse the inheritance. If so, you will only have to make a formal declaration before a notary.

Every case is different. Therefore, if you receive an inheritance, it is best to be well informed about the situation of the property and to be advised by a team of experts, like the one we have in Proyectos Insulares, so that it is easier for you to make the right decision.