Foreclosure?

[lotsoquestions]

What is the name of your state? Indiana

My mother recently passed away. A few years ago she took out a home equity loan on her house and now it looks like there is not near enough equity in the house to pay off the loan. I am really not sure how a bank justified giving an 80 year old woman a loan worth 105% of the appriasal of her home, but that is neither here nor there. My Mom used the money for herself and I am happy that she enjoyed it.

Should we just let the bank foreclose? I have no idea how that works. My Mother had no other assets. My sister and I are paid for her funeral. Any advice would be appreciated. Thanks

 

[HomeGuru]

What is the name of your state? Indiana

My mother recently passed away. A few years ago she took out a home equity loan on her house and now it looks like there is not near enough equity in the house to pay off the loan. I am really not sure how a bank justified giving an 80 year old woman a loan worth 105% of the appriasal of her home, but that is neither here nor there. My Mom used the money for herself and I am happy that she enjoyed it.

Should we just let the bank foreclose? I have no idea how that works. My Mother had no other assets. My sister and I are paid for her funeral. Any advice would be appreciated. Thanks

**A: is there equity in the property now? If so, the estate could sell it. If not, give the property back to the bank via a deed-in-lieu of foreclosure.