On This Page
A mortgage is secured by the property.
The borrower's death does not generally make the debt vanish.
That means one of the earliest inherited-property tasks should be identifying:
- Who services the loan?
- What is the approximate balance?
- Are payments current?
- What type of loan is it?
- Who has legal authority to communicate about it?
Do Not Just Stop Opening the Mail
Grief makes paperwork easy to ignore.
Unfortunately, loan obligations continue moving.
An executor, trustee, surviving borrower or appropriate representative should address the loan promptly.
Can an Heir Take Over the Mortgage?
That is a legal and lending question that depends on the loan and circumstances.
Federal and state rules may affect certain successor situations.
Do not assume the loan must immediately be refinanced, or that anyone can simply start making payments and permanently take over the loan.
Get qualified guidance.
What If the Family Wants to Sell?
Then Lisa wants to understand:
- Approximate payoff.
- Estimated property value.
- Other liens.
- Likely selling costs.
That helps determine estimated equity.
Important
Inherited house plus a mortgage problem? If the debt situation becomes distressed, Lisa's short-sale experience matters. Start at the Short Sale Center.
What If the Mortgage Is More Than the House Is Worth?
Do not panic and do not promise the lender money personally without understanding the legal situation.
This may require attorney, lender and potentially distressed-property expertise.
Lisa's short-sale background becomes especially relevant here.
She has negotiated hundreds of short sales during her career.
