Land contract with unpaid mortgage after death

[Christy Stephenson]

Purchased on land contract. Seller had unpaid mortgage on property when passing away. Seller had no money, only bills. Two Life ins policy had different beneficiaries. One signed over small policy to funeral home. The other is planning on keeping money for herself and not pay the mortgage balance as seller expected. No will. Land contract not recorded. Who is liable for loan balance? Heirs or buyer of land contract