Q: If I own a home and lets say i owe 100K on it and i die, who takes over the debt? Do the inheritors take it over? What is the sequence to occur on this matter?

A: May Allah (SWT) grant you a long life, InshaAllah, ameen.

Wealth comes with responsibilities. If a person is leaving behind a possible debt and has inheritors, here is the manner it can resolved as per Islam:

1) The first obligation after a person passes away is to settle debts using their remaining wealth before any inheritance is distributed. This means that debts must be cleared before heirs receive their shares. 

2. If the deceased left behind enough wealth, the debt should be repaid immediately from that wealth. Any remaining amount after paying debts and funeral expenses is distributed to the heirs.

3. If the deceased’s estate does not have enough money to cover the full $50K loan, then:
a) The heirs are not personally liable. The children, spouse, or relatives are not obligated to pay the debt from their own money. However, if they choose to voluntarily pay it, this is highly rewarded and recommended in Islam. Rasool (SAW) ﷺ said: The believer’s soul remains suspended by his debt until it is paid off. This means the soul is awaiting settlement of debts before full accountability takes place.
b) If the creditor forgives the debt, the deceased is freed from it. Encouraging creditors to forgive debts is a great act of charity (sadaqah) in Islam.

4. If the estate is insufficient and no one pays, the debt remains unpaid in this world. The creditor may seek justice from the deceased’s good deeds unless Allah (SWT) grants forgiveness. As Rasool (SAW) said: Whoever dies and still owes a debt, it will be repaid from his good deeds, for there will be no dinar or dirham there (to assist or bail out a person.)

Allah Certainly Knows Best.