To Probate or NOT - Parent's Home's Worth - Advice Needed!
First off, thanks for taking the time to read this post and provide advice. I'll try to be as detailed as possible.
Sadly, our mother passed away recently. She lived in Irondale, AL in the neighborhood my brother and I grew up in, and in the same house.
She didn't have a lot of wealth and the only reason we can see to open her estate and deal with the probate process is if there's any real wealth to be made from selling the house.
I currently believe that she owes more on the home than what it's worth due to its condition. But that's where the uncertainty comes in.
Redfin lists an estimate for the home at $187k which is quite a lot more than what is owed on the house. That of course assumes its in good condition.
Details on the House:
3Beds 2Baths 2,052 Sq. Ft.$91 / Sq. Ft.
Built: 1975. Sits on a 0.65 acre lot.
(Its within walking distance of several schools, Jefferson Christian Academy, Irondale Middle School and Shades Valley High School.)
From what I understand, the foundation is fine but the rest of the house would need a lot of work. Porch, carport, carpet, landscaping..etc would need repair or complete updating.
My brother and I don't want to put a bunch of work into this place and continue to pay a $650.00ish mortgage for an unknown amount of time unless it's pretty clear that it would be worth it in the long run financially.
If we could only sell it for close to what is owed on it then it would probably be a wash with the cost of mortgage payments and probate process. However, if it could be sold for a decent margin then it would probably be in our best interest to not let it get foreclosed on and try to sell.
Another option is to try and invest some money into it to fix it up and update it. And then try to sell it at market price.
Its a lot to think about while also dealing with everything else...so I'm hoping you good people can help out.
I appreciate any advice you can give. I'll post a picture of the house and can provide more details if needed.
Thank you!
Chris Thomas
PS - It's even harder because I live in Richmond, CA.
