Legal Question in Credit and Debt Law in Michigan

My parents would be deceased for 2 years. Their are 5 sibleys. All in which are grown. We all came to a decision to allow 1 sibley along withher family live in our parents house due to house still carried a mortgage. My sister has maintained this mortgage curently. Now we have a problem now the youngest sibley dd not turn in a vehicle that is currently not in her name , but in my parents's name. and now the Company (Chrysler Finance) is sueing the sibley who resides in the home with her family. IS this fair? My sister only had Power of Attorney for both sick parents for medical reasons only. I was told Power of Attorney not valid when parents die is this true. Also nothing was changed over through court. The family home is still in my parent's name mortgage and escrows are being paid . The sibley that resides in the home makes the payments. Creditors are calling daily trying to collect my father's debts Their is no estate right? because the hous is not paid off. What should we do as responsible sibleys. That siblley who did not turn in the car when we told her to should be the one being sued , not my sisiter who lives in the parents house and has kept the mortgage paid . My MOther died 1/2009 dad died 8/2009 please advise thanks

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