Video: What Happens to a Mortgage When Someone Dies

Thursday Sep 29th, 2022


What Happens to a Mortgage When Someone Dies

Have you ever wondered what happens to a mortgage when someone dies? The simple answer is that a mortgage is not forgiven when someone passes away.

A mortgage is a lien against a piece of real estate and must be repaid.

If spouses are both listed as co-owners on a loan, should one spouse pass away, nothing needs to be done as far as the mortgage is concerned. The surviving spouse becomes the sole borrower by default and is legally responsible for the entire amount of the loan.

Under the law, if the home is passed on to a relative, lenders must allow the family member to take over the mortgage when they inherit the property, but heirs are not required to keep the mortgage in place. They can refinance the loan if a better loan is available, or they can just pay off the loan entirely.

In some cases, heirs don’t want the property, or they may not be able to afford the mortgage, so in those cases selling the home is an option.

REMOVE: Because each state has different rules on how title transfers (either by will or probate),

It is important that you consult with an estate attorney if you have any questions.


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