runningbear, you probably know better than I since you still live there, but since Calif. is a community property state and Laci and Scott acquired the house after their marriage I think Scott (even though) he killed Laci half of the property is still his. Therefore his parents probably borrowed on his half.
Now the life insurance is a different story. Since he killed her he will not collect off that.
on the house borrowing... yes, scott's parents did, once scott signed some power of attorney to mommy and daddy... Sharon Rocha is the administrator of Laci's estate thru probate since Feb court ruling this year in Stanislaus court. No one from the Peterson's side showed up for that hearing. So Sharon was granted it.