What happens to your mortgage when you die?

Answer 1

The estate is responsible to pay off the mortgage. Usually this is done by selling the mortgaged property, paying off the mortgage holder and then putting the balance into the estate. The balance will be used to pay off other debts, if any, and then be distributed according to the will, or if there isn't a will, according to the laws of the state.

Answer 2

Generally:

• The person receiving the property can sell the property and pay off the mortgage from the proceeds.
• The mortgage can be assumed, or refinanced in the heirs name with the original mortgage paid off.
• The heir can allow the bank to take the property.

Answer 3

They continue as a debt against your estate. Best thing to do would be to have one of the heirs inherit it and take it over, at which time they will have to preparre the transfer of the loan to their own name(s). ALternatively they could sell the property and after the mortgage debt was paid off, split the remaining proceeds among the heirs.

Answer 4

Some people may buy mortgage insurance but most do not.

if not, the debt is left to her estate (next of kin - children, spouse etc) You will need to pay the mortgage or the bank will foreclose.

Answer 5

It depends on the policies of that company. The terms and conditions on which the borrower agreed when taking loan.

Answer 6

The mortgage is attached to the property. So if an heir takes possession of the home, he/she must pay the mortgage.

Otherwise, the bank will foreclose.