What Happens to a Mortgage When Someone Dies?

Inheriting a home can bring big questions—especially if there’s still a mortgage on it.

Here’s a quick breakdown of what usually happens and how to get your arms around it.

1. The Mortgage Doesn’t Disappear
If there’s a loan on the property, it still has to be paid. But you don’t have to panic.

• Lenders can’t demand immediate payoff just because the borrower passed.

• Federal law gives heirs time to decide what to do.

2. You Can Keep the Home
If you plan to live in it or keep it, you may be able to refinance the existing mortgage.

3. Or You Can Sell
Want to sell instead? The loan will be paid off from sale proceeds.
You may need to talk to the lender to avoid delays.

4. Watch for Reverse Mortgages
If the deceased had a reverse mortgage, you’ll want to act fast.
These are time-sensitive and have special rules.

Let’s Talk It Through
Every situation is different. I help heirs understand their options, keep things legal, and avoid costly mistakes. If you’re unsure what to do next:

Call me at 714.369.4887
Or email traci@helpforheirs.com