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What if there’s still a mortgage?

Short answer

It’s paid off from the sale. Keep paying in the meantime to avoid foreclosure.

Rules differ by state. This is general information, not legal or professional advice.

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Official sources

IRS: basis of inherited propertyirs.gov
CFPB: inheriting a homeconsumerfinance.gov
FTC consumer advice: real estate scamsconsumer.ftc.gov