What happens to a home equity loan when the borrower dies?
Asked Oct 29, 2011, 10:15 AM
My cousin and aunt owned property together with a rights of survivorship deed. My cousin died, my aunt has dementia and is in a home under Medicaid. I am my aunt's guardian and the court wants me to sell the property. The problem is my cousin had a home equity loan on the property in her name only and the property isn't worth what is owed on the home equity loan. If I sell the property can the new owners get a clear title if the loan isn't paid off?