Are the heirs liable for mortgage of the deceased?

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timandchristy

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My mother in law passed away in Jan 2008. Her daughter was made administrator through probate. The administrator received money from a life insurance policy that was set up to pay off the mortgage on her mother's house. It has been several months and the house has not been paid off. I have also discovered that the homeowner's insurance cancelled in June because of a returned payment. If something happens to the house are we liable for the mortgage? It also seems that the daughter had another life insurance policy on her mother that we did not know about and have no idea how much it was for. What should we do?
 
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