Borrower has passed away

[Zachary Taylor]

Here is the scoop:

• BPO is $35K
• The borrower has passed away and a relative is now living in the house.
• No payments have been made on the note since March 2016.
• City and County back-taxes amount to $1,110 and property taxes of $600. Taxes have not been paid in about 2 years. Tax lien auction will occur next year if nothing is done.
• $3,500 listed in judgements and liens on the title

Generally, I am trying to understand who I can hold responsible for the mortgage obligation and, if no heirs step up and start paying what action can I take and how long and costly is the process.

Since the borrower is deceased, if the heirs want to keep the property I assume the note and titles will need to be transferred into their name through a loan mod?? 

The note is on a property in the New York.