Home line of credit Jacksonville FL

[Dan Green]

Hey BP family, i could use some advice. I am a wholesaler here in Tampa FL but I will be wholesaling a house in my home town Jacksonville Fl. My aunt died and left her home to my cousin ( her only living child)  The house was willed to my cousin. I made  another post asking if she needed to go through probate but i have another issue i want to discuss on this post. Before her father died he took out a interest only line of credit on the house for $189,800 in 2007. He passed away years ago and now the loan has increased to 191,000. My cousin spoke with someone at the bank and they said that they would be willing to take a settlement. I was a little confused abut this being that the house has equity in it so why would they be willing to take less than what is owed.  The house all fixed up is worth about  260k- 275k. Any input would definitely be greatly appreciated.