Sorry to hear about your mother's passing.
Since there is a lien on the house for the mortgage, then unable to pay the mortgage can result in foreclosure. IRS can require the house to be sold to pay off the debt she owed unless she left other assets in her estate which can cover the lien. Your brother as the executor would have to negotiate with the IRS to see if they can settle for less on the lien. As to your name is XXXXX XXXXX mortgage, you are still obligated to pay the mortgage.
The better approach would be to sell the house above market value (which may be impossible in today's market). Selling enough to cover the mortgage and wipe out the IRS lien would be ideal. Otherwise the other options of foreclosure, deed in lieu or a short-sale would greatly affect your ability to secure a new loan for the next 3 to 7 years since you would be responsible for the balance due. The IRS would take first dibs on any foreclosure, short-sale, deed in liue and you would be liable for the balance due on the mortgage.
Any refinance would require the approval of the lender, which is not going to happen with an IRS lien in place. If the IRS lein were taken care of by the other assets of the estate, it could be possible to sell.
Worst case scenario would be to foreclose on the property, IRS gets first dibs and the balance of the debt you would have to file bankruptcy if you do not have assets to pay off the difference.
Sorry to be the bearer of such bad news.
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