My grandmother bought the home we lived in the 90s for 90k at a 8% interest rate. I found out she refinanced the house several times from what seems like predatory practices and malicious advice and now owes 250k at 6%. Basically the house I thought was paid off now has 30 mortgage and she is 90. Her grandkids are in the will to inherent the house but do we inherent this mortgage?
The grandkids can buy the house at that bank auction. (Although they could be outbid, naturally.)
The estate would still owe the difference, and may be insolvent due to that, but the grandkids would not owe that difference / have to assume the mortgage.
Assuming the estate is in debt and loses money on the house, the bank may be more involved in other aspects of the estate. For example they may want items of value (eg: jewelery) to also be sold at auction rather than gifted to heirs.
Just saying that you may wish to pick your battles.