From 24/7 Wall St. · David Beren · · 1m 20s
Inherited Florida House Lien
A 61-year-old woman must pay $52,000 to clear her father's PACE loan before selling his Florida home.
In brief
A 61-year-old woman must pay $52,000 to clear her father's PACE loan before selling his Florida home. A 61-year-old woman must pay $52,000 to clear her father's PACE loan before selling his Florida home. Originally reported by 24/7 Wall St..
Inherited Florida House
A 61-year-old woman inherited her father's Florida house worth $410,000.
Unexpected Property Tax Bill
She found a $52,000 PACE loan line item on her father's 2022 property tax bill.
PACE Loan Details
Her father financed $48,000 for roof and impact windows with a 20-year PACE loan at 7% to 9% interest.
Why Lenders Demand Payoff
Buyers' lenders won't accept a PACE loan because it ranks ahead of mortgages and blocks conventional or FHA loans.
Sale Price Impact
Paying the $52,000 at closing leaves $358,000 for the sale after commissions and closing costs.
Tax Implications
Inherited property takes a cost basis of $410,000, so a sale near that price produces almost no capital gain.
Three Options
She can pay the loan at closing, sell to a cash buyer who keeps the assessment, or rent the house.
Rental Costs
Renting costs $4,900 annually at 8% interest on the $48,000 loan plus higher property taxes.
Critical Steps
She must get an official balance statement and confirm legal authority to sell before listing the house.
The essence
A 61-year-old woman must pay $52,000 to clear her father's PACE loan before selling his Florida home.
