Home equity line of credittaken out by deceased joint owner
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Home equity line of credittaken out by deceased joint owner
My mother and I were joint owners upon survivorship on her home. When alive she took out a home equity line of credit. Once she passed I became sole owner. Am I liable for her home equity line?
Asked on June 23, 2018 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If you did not co-sign or guaranty the line of credit, you are not personally responsible: that is, you do not have to pay the loan/line off out of pocket. BUT if the HELOC is not paid, the lender can foreclose on the property--so they can't make you personally pay, but they can foreclose. Her death does not take away their right to foreclose if not paid. If the property is valuable enough to you, either economically or emotionally/sentimentally, that you are willing to pay the remaining balance on the HELOC, you will have to do so (either paying it in cash, or paying it off with a new HELOC you take out) if you want to keep the property; if you don't care about the property, you can refuse to pay, let them foreclosue, and will not owe anything--all they can do is take the property.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.