What liability do heirs have regarding a foreclosed property?
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What liability do heirs have regarding a foreclosed property?
My sister-in-law died last year and her youngest sister was in charge of her estate. My husband and I received a foreclosure statement today with our names on it as heirs to her property. We have never seen or heard of a Will. The younger sister never told us that we all were heirs to the estate and has been living in the house since the death. Are we still liable for this mortgage since she did not disclose this info to us. What recourse do we have to this nightmare, will this affect our credit? Will we lose our home?
Asked on April 30, 2012 under Estate Planning, Maryland
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
So long as you and the other heirs of the estate never signed any paper work with respect to the loan that is being foreclosed upon concerning a piece of real property, you and the others do not have to be concerned about any negative ramifications concerning the impending foreclosure personally.
Rather, the assets of the estate of the person who passed away could possibly be subject to a deficiency judgment depending upon the type of the loan (purchase money or not) and the type of the foreclosure (nonjudicial or judicial) depending upon the laws of your state. I suggest that you consult with a real estate attorney about the foreclosure situation with the real property that you have written about.
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