The house is apraised at $94000...my sister agreed to buy my share of the house at $46250 but expects me to pay off half the mortgage that is left, while she gets to keep the house...
It sounds as though you know the answer. Each of you inherits less the mortgage. She pays you half of $94000 less $55000 and continues to make mortgage payments -- if the lender will accept her credit. If not, she has six months after appointment as executor or administrator to sell the house before the lender has the right to foreclose.
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