We all do it, take all our questions about real estate to the infamous Google! Initially, they mostly revolve around the same topic everyone is curious about: “When is the housing market going to crash?” Frankly, I’m a bit tired of that one, so let’s talk about a few other commonly searched questions.
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Can You Sell a Property After Probate?
This is a common question, but not one many people are familiar with. Probate is the legal process of settling a deceased person’s assets and debts. Depending on whether there’s a will, this process can take anywhere from a few weeks to several months. If the owner of a property has passed away, probate is required before the deed can be transferred to a new owner. So, the short answer is yes—you can sell a property after probate. It’s a necessary step that must be completed before the sale can proceed.
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What Property Can I Afford?
This question really boils down to: “How much can I afford to spend on a mortgage?” Most mortgage lenders won’t approve you for a loan if your credit-reporting debts exceed about 45% of your gross income. For example, if you make $100 a month, your total debts shouldn’t surpass $45. If you have a $10 car payment and two credit cards with minimum payments totaling $5, the bank might approve you for a $30 mortgage payment. However, this doesn’t mean it’s the best decision. As a general rule of thumb, your mortgage or rent payment should not exceed one week of your take-home pay, not your gross income. Ultimately, the amount you can afford is a personal decision that shouldn’t be dictated by anyone who isn’t responsible for paying the bill!
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How Do Property Auctions Work?
This is a question I hear quite often. Public property auctions are usually county tax auctions. These auctions typically occur on a regular schedule, like the first Tuesday of every month, and you can find a list of properties and their minimum bids (usually the amount of taxes owed) on your county government’s website. In Georgia, for instance, if you buy a property at a tax auction, you must go through a legal foreclosure process to own the property after the redemption period, which lasts at least one year. During this time, you cannot access the property. Additionally, you must pay in cash on the day of the auction, and desirable properties often sell for much more than the tax bill.
In the case of true home auctions, which are less common, you will also need cash when your bid is accepted. If a property is in default with an outstanding mortgage, it often doesn’t make it to a public auction. Instead, the bank holding the mortgage typically takes possession of the home at auction and sells it after completing the foreclosure process.
If you have more questions, feel free to reach out to me directly, and I’ll do my best to provide the answers you need!
To see more than 50 of Shawna’s previous local real estate articles, see her thought leader page.
Shawna Woodward
130 North Belair Road
Evans, GA 30809
Phone: (706) 993-1133 or (706) 399-8707
Website: https://www.mhpaugusta.com/
