I am near death and owe $197,000 on a $265,000 co-op property. I do not want my heirs to inherit the debt. Can I walk away and let the bank foreclose?

Most of my other assets have designated beneficiaries and will not become part of my estate.

Yes, you can still owe the balance and if there is any estate, they can get what is in the estate to pay this

I would consult an attorney to make a will. Since the mortgage is a secured debt, if you leave the property to your heirs or DON'T have a will, then they WILL be responsible for the debt. An estate attorney can best advise how to deal with this.