Inherited a house? Here's what nobody tells you

I didn't know I owned a house.

When someone dies without a will, Indiana law decides who inherits, usually a spouse, children or other close family. Those family members can own the house, or a share of it, without any paperwork in their names.

That's why a foreclosure case sometimes names "the unknown heirs" of the owner. The lender has to include the family even when it doesn't know who they are, and many families never see those notices.

The house is still in Mom's name. Is it mine?

Maybe a share of it. The county record doesn't update itself when someone dies, so a deed can sit in a parent's name for years. To sell, or to deal with the lender, the title has to be cleared first: usually by opening an estate in probate court, or with an affidavit a probate attorney prepares and records.

How do I check what's on record?

The county recorder shows the deed and any mortgage on the house. MyCase shows whether an estate was ever opened (search the owner's name) and whether a foreclosure case is open.

There are several of us. Who decides?

Each heir owns a share, so selling the whole house needs everyone to sign, or one person with authority from the probate court (the personal representative of the estate) to sign for the estate.

I don't talk to my siblings.

That's more common than people think, and it doesn't stop a sale. Nobody has to sit in a room together. Each owner can sign separately, often in front of a notary near where they live, and the title company keeps each person's share of the money separate.

If one owner won't sign at all, Indiana courts can order a sale when co-owners can't agree, and an estate's personal representative may have authority to sell. A probate attorney can tell you which applies to your family.

One of us lives in the house.

Living there doesn't give that person more of the house than the others own. It's worth agreeing early on who pays the mortgage, taxes and insurance while it's sorted out, and writing it down.

Can I sell just my share?

It's legally possible, but almost nobody buys part of a house. We'd much rather work with all the heirs together, so everyone gets paid at the same closing.

Probate is already done. Now what?

If the estate was closed and the house was deeded to the heirs, the people named on that deed are the owners and they sign to sell. If the estate closed without the house being dealt with, a probate attorney can usually fix it without starting over.

Do we have to go through probate?

Not always. Indiana has a simpler process for small estates (up to $100,000 for deaths after June 30, 2022), but that affidavit covers things like bank accounts and cars, not the house. Real estate usually needs an estate opened or a separate recorded affidavit.

How long does it take?

A simple estate can give someone authority to sell within weeks. A contested one takes much longer. If a sheriff's sale is already scheduled, tell your attorney right away, because the sale date sets the clock.

Do I owe Mom's mortgage now?

Usually not personally. The loan is tied to the house, so the house pays it when it sells. Ask a probate attorney about your own situation.

What keeps costing money in the meantime?

The mortgage interest, property taxes and insurance keep running. Many insurance policies limit coverage once a house sits empty, so call the insurer if nobody is living there.

Can the lender talk to me?

Yes, if you ask to be confirmed as a successor in interest, an heir of the borrower. Our resources page has a letter you can send to get the payoff and the loan details.

What if the house is already in foreclosure?

You still have options until the sheriff's sale: catch the loan up, sell it, or get help from the free counselors on our resources page. If it sells at the sheriff's sale for more than what's owed, the extra belongs to the owners, including heirs.