My father in law passed away 7 months ago without a will. His wife predeceased him.He had a 46,000.00 home equity loan. There isn't any money, the only assets are the house,it's contents and a car. There is some small collections including some coins. My brother in law has been paying this loan and has not notified the creditor of his passing.He is also paying the homeowners insurance the car insurance and the real estate taxes.(these creditors were also not notified).What happens to the home equity loan when the borrower dies. If he notifies the bank and stops paying the loan until the estate is settled will fees and interest accrue or are we protected from added debt?

You cannot inherit debt. The estate is stripped of value and the lendor eats the rest of the balance.

The house and all property would be sold to pay off as much of the debt as possible.

The heirs do not owe anything beyond selling the estate to pay as much of debt as possible.

This information should be part of the public school curriculum. So should proper use of credit cards. Until I saw this post, my parent's debt was scaring the bejesus out of me. Thanks.

Quote:

---

Originally Posted by simoneaugie

This information should be part of the public school curriculum. So should proper use of credit cards. Until I saw this post, my parent's debt was scaring the bejesus out of me. Thanks.

---

Eh - its on the internet... that's at least as good as public school. ;)