Dad passed 2 weeks ago. No will. So I and siblings are just now embarking on this probate journey (in Maryland) - a first for us. On the phone, a probate attorney advised that with so few assets involved, we go it ourselves. So we're doing what they call here the "Orphan's Court" thing. My brother submitted forms to be the estate's rep last week.
At this early stage, there are soooo many unknowns. Not the least of which is the tax consequences of selling the house.
Quick history: Mom & dad bought the place in '76 for about $45K. They divorced in '87, so my dad refi'd for $105K to give mom her half of the value of the house.
Several cash-out refis later and the mortgage now stands at $187K plus the bank tacked on $5K because, apparently, the foreclosure process got underway. A local Realtor thinks the house value is maybe about $225K.
So we're wondering if the bank and the tax man are going to leave anything for us once the property sells? If not, (1) we're not seeing the point in fixing up and sprucing up the place since we'd never recoup the time and money; (2) might we be obligated to sell off all of dad's possessions if the tax man demands more than what the proceeds of the property sale can provide? and (3) maybe we're better off just emptying the house and letting the bank foreclose (a 2-3 year process)?
If we need to seek out a lawyer, then which kind? Estate? Tax? Probate?
Separately, dad had no credit card debt and there's no car loan. But he has an outstanding $21K personal loan from me and it'd be kinda nice if us kids could recoup the funeral expenses.
