Legal Question in Wills and Trusts in Indiana

My mother passed away without creating a will. Her house was not paid off and she was divorced. The bank attempted to make my brothers and I tenants in common, after which we were to sign a deed in lieu of foreclosure. However, I did not sign the document because I did not want to be associated or liable for the debts on the house (and my understanding is that the deed in lieu of foreclosure would affect our credit). Recently, the bank informed me that they would proceed with direct foreclosure, and that my brothers and I would receive notices as we are the heirs. Will this harm my credit in any way? Should I just have signed the deed in lieu of foreclosure? Do I automatically become an heir, even when she did not own the property? Am I liable in any way in this situation? I have no interest in the property, do I need to deny this inheritance? This is occurring in Indiana. Thanks for any advice.


Asked on 6/14/12, 7:23 am

1 Answer from Attorneys
Jay Rigdon Rockhill Pinnick LLP

Will this harm my credit in any way? ANSWER: It will show up on a credit report, but an explanation to the creditor will probably fix it.

Should I just have signed the deed in lieu of foreclosure? ANSWER:Probably.

Do I automatically become an heir, even when she did not own the property? ANSWER:You said she DID own the property, so without a will, you are an heir. The existence of a mortgage on the property doesn't mean she didn't own it.

Am I liable in any way in this situation? ANSWER:You are not liable to pay any money, if this is what you mean.

I have no interest in the property, do I need to deny this inheritance? ANSWER: You can disclaim your interest, but then you are passing the headache on to your children.

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Answered on 6/14/12, 11:56 am


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