the line of credit. Does the lender recognize your sister as someone who could draw on the line. If so, that could be a problem.

Would the lender give you notice if there is a default on the loan?

And it was only my father on the note so I don't think anyone could have made a draw.

I have no idea if the lender would give me notice. I would hope so that they'd pull up the county property record and at least find my name on it, but it isn't like my mailing address or phone are on there, however that is easily findable.

I guess I'll just trust my sister if I have to vs. rock the boat.

Also I knwo it is illegal to run a credit check on someone without their consent, but could I do so on my father (deceased) to see if the account still reports under him?

and procedures (at least national banks are). The successor-in-interest will have to offer documentary evidence that they are indeed the successor-in-interest to the estate in order to be authorized to get information on the loan.

Provided that you have a death certificate and you are the executor of the estate they may provide you with the information.

Estate attorney advised that the bank would not do anything if we didn't say anything as long as the payment terms on the HELOC were met. Everything has been copacetic for the last 6 years under this assumption.

There is plenty of equity in the house, but wanted to let sister live there for period of time (son in school) before selling it off and splitting proceeds. So that is what we did.

I figure at some point the bank would contact me (name is on deed they can pull online) if they were not getting paid. But the balance at death (6 years ago) was <10K, so maybe they wouldn't put any time into it.

It hasn't hit my credit or anything (I don't think it could I am not the borrower) so I am not hurt, but time to sell will be in about 18 months (and pay off HELOC obviously) and trying to get some idea how it will go down.

Of mortgage, it is against federal law to accelerate a loan due to death of mortgage under Garn-St. Germain that results in lineal descendant to become owner of property.

They obviously can enforce payment but cant accelerate the loan.

to pay off the HELOC or has everything else already been liquidated?

That may be the easiest solution and then have the payments that your sister is making replenish the funds that were used to pay off the HELOC, however, I am a lender not an estate attorney so I am not even sure that is permissible.

It is tough to give a blanket answer because every bank will be different in how they handle the situation. Your bigger banks would likely handle the situation much differently than a community bank would.

As an aside - Has your sister been clear direction on the standard in which she has to maintain the house? I have seen instances similar to this where a house gets trashed and severely diminished the value due to deferred maintenance etc. I am not saying this is your sister but, if you haven't already it may be a good idea to set those expectations.

And I really appreciate the advice and I know none of it is professional advice.

Everything else has been liquidated. House was deeded over to me and my sister JTRS* It was my father's estate, died in 2011. Sister and her then 10 year old son were living with him for several years before then. She has job etc. but some poor decisions and bad with money, so idea was with my name on house she could not go borrow against it and nephew would have stable home.

The verbal agreement was she maintains the house (it was in "fair" condition in 2011) pays the taxes, insurance, and HELOC** and the two of them could stay there until he finishes HS. She agrees and still acknowledges this deal as he is now a HS junior. I come by the house 1 or 2 times a year for visit, we still have decent if shallow relationship. Family in area would let me know if things got too sideways, so no maintenance issues (well unless roof or furnace go, but that's a different issue.)

I could pay off the HELOC with personal funds right now, but then that would all be out of my share. She does not have funds to pay half of it off. I do NOT want to be her creditor to replenish funds or anything else (she won't pay regularly - same reason I won't let her just make me payments for her half - she has bad credit.)

So I think sitting on it is best plan, but I'd just like to know if she's paid at least reasonably on it (i.e. penalties and interest not making balance 20K from a 10K start.)

In the end, the house is worth 100-110K, I'd be happy to get 30K for my half, but she is not credit worthy even for a small mortgage.

*I recognize that if I die sister gets it all not my wife and kids but we desired that setup as they have other arrangements made.

**Any principal paid down I would give her "credit" for in the split of the sale proceeds.

That is sort of surprising. While it is jurisdiction specific, most states have laws that provide that heirs of property take said property as tenants in common.

I mean I don't have it is front of me, but I am pretty sure attorney gave us options and we selected that specifically, because she verified I wanted sister to get my share if I died. It was in state of Ohio.