Who’s Responsible For A Mortgage After The Borrower Dies?

Nov 17, 2023

5-minute read

Share:

A large house in winter, showcasing a spacious residential property during the winter season.

When a homeowner dies, the inheritance of a home is typically decided by a will or probate proceedings. But what happens when the property has a mortgage on it? Will your next of kin be responsible for your mortgage debt? What will happen to your surviving family members who still live in the home?

Let’s review what happens to your mortgage when you die and how to plan ahead to avoid mortgage issues for your heirs. We’ll also explore what you need to know if you’ve inherited a home after a loved one has died.

What Happens To Your Mortgage Debt When You Die?

Your debts are typically paid from your estate after you die. Before any assets can pass to your heirs, the executor of your estate will use your assets to pay off your creditors.

However, with mortgage debt, the process is different.

Unless someone is a co-signer on the loan or a co-borrower, no one is legally obligated to continue paying off yourmortgage. But if someone inherits your home and decides to keep it and take over the mortgage, there are laws thatallow it. Most commonly, surviving family members inherit the property and maintain the mortgage payments while they arrange to sell the home.

If no one takes over the mortgage after your death, your mortgage servicer will begin the process of foreclosing on the home.

See What You Qualify For