Legal Question in Real Estate Law in Illinois

They can put a lien on the estate and the mobile home is apart of that. One reason a death notice is required to be published is to alert any creditors of the death. Don't try to evade posting the death notice. You would not like what happens.

As to the second question about asking the creditors to accept less than they are owed: collectively they are entitled any money up to the value of the estate. I doubt that banks will help the heirs out of the goodness of their hearts. If I was a bank lawyer I would say that you would be netting $25,000 after the debt is paid. They might write off any debt that was owed in EXCESS of assets, but certainly not when the assets exceed the debt.