If debt remains on dwelling of deceased, and heir wished to make no claim to said dwelling or property, is heir still responsible for outsta...

Question

If debt remains on dwelling of deceased, and heir wished to make no claim to said dwelling or property, is heir still responsible for outstanding debt.?

Answer

No. The heir is not responsible. But if nobody pays for the loan, then the lender is going to foreclose. So the question to be addressed is what is the property worth and how much is the loan? If the loan is worth less than the property then the heir needs to sell the property, pay off the loan and pocket the rest. Or the heir needs to file a formal renunciation and disclaimer. That way, the heir will be treated as if he/she died before the deceased and the land will pass as directed in the will or, if there is no will, to the heirs under the state intestacy laws.

If the land is worth less than what is owed, then I would simply tell the lender to foreclose or save the lender the hassle and convey the heir's interest in the land back to the lender.