Can Foreclosure on Property in Mother's Estate Hurt My Credit?

[sammie421]

My mother passed away suddenly in May. My sister and I are co-administrators of the estate (in VT), which is insolvent. She owed as much on her recently purchased home as it was worth (the debt was likely greater than the value given the current housing conditions). For these reasons, we decided the best course was to let the home go into foreclosure. My sister has spoken to someone at the probate court and a lawyer who both said this could harm our personal credit - this is counter to everything I've heard previously. Is there any way for this to impact our credits? I really appreciate the help

 

[dee_dub]

It would be news to me. I'd ask how/why this could impact your personal credit rating.