Hi, a sister-in-law just passed away, she was single and had no will, she has about $50,000 in credit card debt, owes about $10,000 on her house, the family wants to keep the home, at least for awhile. One sister has been to the court house and is the Administrator of the estate. The questions are, can they make payments and keep the house? Or will they have to give it up for the debt? Thanks for any assistance.

Oh and what are they suppose to do with her stimulus check? Can they cash it and use it for expenses?

No one can cash the stimulus check. If the receipient is deceased, then the money stays with the IRS.

As to the mortgage and debt, without a will, the government will decide what happens and how her estate gets settled.

I do wish you luck!

I don't know about the stimulus check, except call your congressman or the IRS. If there is no will, someone from the family or a creditor can apply to be administrator of her estate. You may want legal assistance for this. Look at the promissory note and the 'mortgage' to read the language pertaining to events of default; there may be a 'death' clause. If the payments continue, the lender will not be so quick to foreclose. But a notice to administer the estate will have to be provided to all heirs at law; and a notice of administration of the estate will be placed in the legal newspaper of her residence. This will provide all creditors with legal notice to participate in the resolution of the estate.

on the debt and the house, this is the issue, her property is to be sold to cover the debt, so to keep the house they may have to actually buy it from the estate for fair market value ( get loan) and pay off the old loan balance and pay as much as is left for the other debts. They can not merely keep the property without paying off the other debts.

Thanks Pro, George and Chuck. I've arranged for a meeting with a probate lawyer on Wed. the 21st. Were trying to compile a list of questions, we need to ask. Thanks again