Legal Question in Wills and Trusts in Pennsylvania

Are the heirs responsible for their parents mortgage debt when the parents pass away? There is no will.


Asked on 10/19/11, 6:24 pm

1 Answer from Attorneys

Yes and no. If there was a will, I would say to read the will, but you indicate that there is no will. The general rule is that the heirs inherit the property subject to any existing liens (mortgages or car loans). In other words, if they want to keep the asset then they need to keep paying for it.

If the item is not worth what is owed, the heir can call the lender and tell the lender to take it. The heir has no responsibility for the loan in that case but the heir does not keep the car or item. The same is true of land. If the heir wants to keep the land, then he/she must continue to pay on the mortgage (assuming the other debts in the estate are satisfied).

I guess the question you need to decide is how much the land is worth and consider how much is owed versus how much equity is there. If you truly don't want the house, then I would sell it, pay off the mortgage balance and keep the equity. If there is absolutely no equity in the home, then tell the lender that they can have it.

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Answered on 10/19/11, 7:37 pm


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