I am paying for my deaceased parents house, should the estate be liable for the home equity loan that they had?

I will be ultimately be buying the house , but wasn't sure if I am liable for paying the home equity loan. The estate us being handled by another family member. Asked by Mblues 13 months ago Similar questions: paying deaceased parents house estate liable home equity loan Business > Financial Services.

Similar questions: paying deaceased parents house estate liable home equity loan.

This was not your loan. It was your parents loan. Unless you cosigned the equity loan, you have no responsibility in paying off the loan.

You need to wait until the estate is settled and the house is free and clear of all loans before you start the buying process.

Well, yeah, the home equity loan has to be paid off by the estate if you want to sell off the home, or in this case, if you're buying the home. You don't pay off the loan unless there's some sort of hanky-panky going on with the estate.

I just want to make sure that the estate should be liable not me as this was a loan they got to pay off their bills Mblues 13 months ago .

I don't see how you would be liable. But keep in mind that the equity loan is attached to the house. What you pay for the house should be used in part to pay off the loan.

All debts of your parents are part of the settlement process for the estate. So yes, your parents HELOC (Home equity line of credit) will be part of the settlement of debts, liens and taxes. If the estate cannot pay off the debt, lien and taxes from the liquid assets, you will either have to sell some assets or loan money to the estate.

Otherwise, everything will be hung up in probate until these obligations are cleared. So in that sense, you might have to come up with some money. But in reality, it is NOT your liability.

If you want to buy the house from the estate - then your new mortgage may be enough to clear the HELOC and the 1st TD. Hope so. You should try to work out a distribution of inheritance plan and then maybe horse trade for the house with your share of other assets.

Then you might have some sizable equity in the house. Try to get your attorney or planner to work with you and the other heirs. It would be worth it to work together.

Hope this helps.

Thank you for your help Mblues 13 months ago .

If I am on a title and not the loan am I liable for the house.

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