What liability do heirs have regarding a foreclosed property?

UPDATED: Apr 30, 2012

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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