It has to do with how the property is owned, who signed off on the loan, and how bank accounts were titled or vested. Most states will want probate and courts to decide. Trusts can generally avoid probate but not after one passes. Paperwork is very important.
If the bank account is with the same bank that foreclosed they may very well take it -if not they may get a deficiency judgment and take the $35k plus fees. Can’t be sure with info provided.
Lesson is to get plan and attorney prior to death for those of us still here. Good luck.
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