Upcoming Foreclosures

Can I let a house go into foreclosure under a dead person's name? Or will the mortgage transfer to the heirs?

My father-in-law passed away recently and he owed as much or more than the value of the house on a home equity loan. Can we let the loan default and let the house foreclose? Or will the home equity loan automatically transfer to the heirs and affect their credit? This home is in Texas.

Public Comments

1. "normally" there are clauses or some type of insurance that provides the debt to be erased in the event of the borrower's death.
2. The house should go into probate, with the rest of the debts. It should not negatively effect the heirs credit.
3. snoopy has a good point. you need to get with the lawyer of the estate and the executor (or if you are) and also the bank. The bank will be able to tell you about the insurance...good luck.
4. I don't know Texas laws. The only way the debt would be erased is if the homeowner carried his own mortgage insurance policy that would pay off the mortgage in the event of his death. Normally all of the deceased debts are levied against their estate and accounts can be frozen to pay off debts.
5. Hi, I used "Credit Solution" to settle my debt and avoid foreclosure.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here: http://urlhawk.com/549