Legal Question in Credit and Debt Law in New Jersey

Re: Parent's Mortgage

Not unless they want to keep it. Children are not generally responsible for their parent's debts. So, if the parent dies and there is not enough money to pay the debts, the estate is bankrupt. If there is a mortgage or security interest on any propery, that property will be foreclosed or repossessed and sold to pay the debt.

If the children want to keep the house, they should generally not start making payments on it without knowing exactly how the title will be transferred. There may be encumbrances on the property that are not obvious. A lawyer should be consulted to assist with the transaction so that, among other things, the children don't spend their own money and get nothing back for it.

See also: http://info.corbettlaw.net/lawguru.htm