Foreclosure on a deceased individual's home left to a spouse?
Question:
My question is, if this home is foreclosed and auctioned, can my nieces be held responsible for half of the debt? I can't seem to get a straight answer from anyone on this. If their credit will not be affected, I say let it foreclose and let my sorry brother-in-law take the hit to his credit. If they will be affected, I want to do what I can to prevent it/sell it before foreclosure, etc. Anyone with experience in this area?
Answer:
Your nieces will not be held responsible for the debt unless their names are on the mortgage loan. However, they may lose their interest in their mother's home if it is foreclosed upon.
They need to contact an attorney immediately. Laws differ by jurisdiction, but it's likely they can get the stepfather out of the house before the foreclosure under a statute that provides that a partial owner may not do anything that jeopardizes another partner's investment. That also covers a lack of maintenance, as well as non-payment of debt.
I assume the daughters are adults. If not, you should represent them as their closest relative.
If his and Her name where on the mortgage, and her will did not state her half goes to the children sorry it is his. Question did she not have insurance on it to cover the remaining mortgage in the event of her demise? Most people do. If not it looks like the dad wants to make sure the children do not get saddled with the debt. No your nieces will not be responsible.
Some answers about foreclosure Here:
http://www.foreclosureinfousa.net...
you need to consult a lawyer. I dont believe debts are inherited, however there may be a claim against the balance of her estate.
Mark has it right Debts are not inherited. If the estate does not have the money to pay a debt, the debt owner is out of luck.
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