Legal Question in Wills and Trusts in Illinois

A person who inherits the house will be subject to the mortgage terms; if the persons wishes to take the house, the mortgage issues must be resolved with the holder of the mortgage. The person (beneficiary) is not required to take the house if the mortgage can't be modified or renegotiated; the asset is basically negative equity, and the mortgage is actually a debt without equity.

Unless the inheritor is also already on the mortgage, such inheritor can walk away from the whole thing. If the inheritor wants the house, s/he takes it subject to the mortgage -- even if the house is underwater.