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    freddiesteddie's Avatar
    freddiesteddie Posts: 1, Reputation: 1
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    #1

    Feb 8, 2012, 10:39 AM
    Do I have to pay for my deceased uncle's home equity debt if its in his name?
    I inherited the house, I have had it for a few years and been paying it, but everything is still coming in with his name. Did the bank mess up and can I get just not pay the existing 51,000 dollars left on the house?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Feb 8, 2012, 10:53 AM
    The executor of your uncle's estate didn't complete his job. He should have worked with you and the bank to restructure the loan into one with your name on it. Also the deed to the house should have been changed over to your name - was it?

    I suspect that the executor failed to submit the estate to probate - is that right? If so, then if you stopped paying off your uncle's loan the bank could foreclose. I suggest you and the executor get together and plan how to approach the bank.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Feb 8, 2012, 11:05 AM
    No you are not required to pay your uncle's debts. On the other hand, the home equity loan is a secured loan protected by a lien on the property. So, if the loan is not paid the bank can foreclose.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Feb 8, 2012, 11:40 AM
    All of the estate needed to be settled prior to you "getting the house" who was the executor of the estate ?

    But any lien on the home has to be paid, or they can foreclose.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #5

    Feb 8, 2012, 06:33 PM
    Quote Originally Posted by freddiesteddie View Post
    I inherited the house, ...
    Your uncle died. There was a will leaving the house to you. You didn't file a petion with the probate court, but instead simply assumed it was yours. Is all of this correct?

    There seems to be a very common misunderstanding of how inheritance works. One does not inherit, especially real estate, unless and until the will is "probated" (old English word meaning "proven") in court.

    Quote Originally Posted by freddiesteddie View Post
    ..., but everything is still coming in with his name. Did the bank mess up ...?
    No, it appears that you did. The bank isn't expected to automatically know if and when a borrower (mortgagor) dies.
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