Maybe. Your heirs have a few choices. 1. They can choose to sell the home, pay off the loan and keep any remaining balance from the sale. 2. They can keep the home, pay the lesser of the loan balance or 95 percent of the appraised home value. 3. They can have the loan servicer sell the property, which is often the choice among heirs who do not want to keep the home and have a higher loan balance than the home’s value.