Paying Off Loans on Inherited Property

[Timothy Nelson]

I inherited a home oat the end of August 2011. The property carries a home equity loan in the name of deceased relative. I have been paying the bill every month since. I never contacted the lender to know about borrower's death. The house is for sale now. Am I legally required to pay off that debt? If so, is it possible to get a reduction in pay-off amount as I am not the borrower?

[Account Closed]

You can't sell the house encumbered with the HELOC, so yes it will have to be paid. No, you won't be able to get a reduction unless the property is upside down. Lenders don't discount loans that are performing. Even if it were upside down, the lender is very unlikely to work with you as you are not the borrower.

Question: Are you on title? Was the property deeded to you by the decedent or their estate or trust? If not, you've got bigger issues than the HELOC to deal with.