What Happens to a Mortgage When Someone Dies
What happens to a mortgage when someone dies? This is a question that many people don't think about until it happens. In some cases, a mortgage can be easily assumed by the person who inherits the house, or an interested family member. In other cases, you may find yourself responsible for paying off an entire loan before you can take over the property. Knowing what options are available to you can help you decide what you’d like to do with a mortgage after someone dies.
What happens if you inherit a house with a mortgage?
If you inherit a house with a mortgage, there are a few steps you should take before deciding how to proceed:
- Find out if there is any outstanding debt on the home (and what kind of debt it is).
- Speak with any other heirs and identify what everyone would like to do with the property.
- Hire an appraiser or real estate agent to help you through this process.
- Identify the value of the home with your real estate agent or appraiser.
Once you understand the type of mortgage on the home, the amount of debt owed, and what the actual value of the house is, you'll be in a good place to make an informed decision on your next steps. Ultimately, if you decide to keep the house you inherited and it has a mortgage, it is your responsibility to take over the payments on the loan. You should contact the mortgage company as soon as possible and let them know that you are taking over the payments. If you don't notify the mortgage company of the death and fail to keep up payments on the loans, you could face foreclosure after the death of the borrower.
What happens to a mortgage when someone dies?
When a borrower dies, the executor of their estate is responsible for notifying the mortgage company. The company will work with the executor to determine the best course of action. This may include foreclosure, or the assumption of the mortgage by another party. In some cases, a reverse mortgage after death may be paid off upon death of the borrower. It is important to contact the mortgage company as soon as possible after a death so that they can begin the process.
In terms of handling the mortgage after the death of a parent, it depends on the estate's standing. It's up to the executor to handle the deceased's estate, which includes maintaining payments on a mortgage. When it comes to handling a mortgage after the death of a spouse, you (or the executor) still needs to notify the lender of the death. The assumption of the mortgage after a spouse's death falls to the surviving spouse.
How do I handle a reverse mortgage after a death?
A reverse mortgage is a type of loan for homeowners who are 62 years of age (or older) that lets them borrow against the value of the property. Reverse mortgage holders do not make loan payments and instead, the entire balance of the loan is due when the borrower passes away, sells the property, or moves away. If you've inherited a property with a reverse mortgage, you would need to pay off the loan balance before you can take over the property.
When to notify mortgage company of death
You should notify a mortgage company of a death as soon as possible. In most cases, you should notify the company within 30 days of the death. If you are an executor of an estate, it is your responsibility to make sure all debts are paid off before settling the estate. Notifying the mortgage company is one of your first steps in this process.
Transferring a mortgage after death
In some cases, you may be able to transfer the mortgage after death to another party. This is often done if there is a surviving spouse or child who will continue to live in the home. The transferring of the mortgage after death requires paperwork and approval from the lender. It's important to note that not all mortgages can be transferred after death, so it's best to speak with the mortgage company if this is something you are interested in.
How to take over a deceased parent's mortgage
Who is responsible for assuming a mortgage loan after a death depends on a few circumstances regarding co-borrowers, co-signers, named beneficiaries, and no beneficiaries:
- When there is a co-borrower on the mortgage: If there's a surviving co-borrower on the mortgage, this party is responsible for paying the debt.
- When there is a co-signer on the mortgage: Co-signers are equally responsible for paying the debt and would be responsible for assuming the mortgage if the primary signer passes away.
- When there is a designated beneficiary: If there's a designated beneficiary mentioned in the will, they will inherit the title to the home. In order to assume the mortgage, they'll need to complete the assumption process by getting in touch with the mortgage company directly. Federal law states that lenders give family members the opportunity to assume the mortgage if they've inherited a home or property.
- When there is no designated beneficiary: If there isn't a designated beneficiary and no other mention of who inherits the home is outlined in the will, the lender will attempt to sell the home in order to pay off the loan. If you want to keep the home, lenders are required to give you a reasonable amount of time to assume the loan, so it's important that you get in touch with the mortgage company as soon as possible to begin that process.
If you've decided you'd like to pursue the assumption of a mortgage after the death of a parent or other loved one, it's time to contact the lender and notify them that you intend to take over payments on the loan.
Handle tasks with our checklist
Notifying mortgage companies
Each mortgage lender or company has different internal processes and procedures for handling the death of a borrower. Here’s information on how to get in touch with some of the larger lending companies and what type of documentation you may be asked to provide.
Chase
Contact Chase's support team by phone at 1-866-926-6909 (Monday-Friday, 8 AM to 9 PM ET) or visit a local Chase branch. Have the following information ready before contacting:
- The social security number of the decedent
- Your relationship to the deceased person and identifying information (such as a license)
- A death certificate
- The date of death of the decedent
- Contact information (phone number, address, and name) for the executor or administrator of the estate (or attorney / personal representative)
PNC Bank
Fill out the following form. Once you've filled out the form, submit it in one of the following ways: Mail to Customer Service at:
PNC Bank
P.O. Box 1820
Dayton, OH 45401-1820
Or
Fax to: 1-833-299-6176
Carrington Mortgage Services
Fill out this form.
Call 800-561-4567 for more information on the required documentation you need to mail in alongside this form and more information on the process.
Freedom Mortgage
There is no specific information on how to file a claim after a death, we suggest contacting their support team.
Call 855-690-5900 to learn more about Loss Mitigation options.
Wells Fargo
Notify them online or bring your documents into a Wells Fargo branch and speak to a banker. Find a branch here.
You can also call for additional information:
Wells Fargo Advisors - Call 1-800-603-1584
For Wells Fargo Private Bank accounts, call 877-646-8560.
You will need a death certificate in all cases, but you may also need additional information such as:
- Certificate of Trust naming a successor trustee
- Identification of the joint account holder or beneficiaries
- Court-issued document appointing an executor/administrator or Small estate affidavit in accordance with state laws
LoanDepot
Fill out and mail in this form.
Mail to:
loanDepot
P.O. Box 11733
Newark, NJ 07101-4733
Caliber Home Loans
You'll need to fill out this form.
Unfortunately, there's no guidance on where you are supposed to submit the form. Get in touch with their support team here.
Contact Fairway
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Loan Servicing
1-800-201-7544
Servicing@fairwaymc.com
Hours of Operation: Monday - Friday, 8:30 am - 5:00pm CST
Contact Corporate
4750 S. Biltmore Lane Madison, WI 53718
Toll-Free:1-866-912-4800
New American Financial
Complete the following application.
You'll need to include the following information:
- A death certificate, or
- An obituary or newspaper piece that reports the death
Submit the completed application and required documentation by mail at:
New American Funding
11001 Lakeline Blvd, Bldg. 1, Suite 325
Austin, TX 78717
Fax: 855-807-1178
Or email: homeretention@nafinc.com
New American Financial will contact you within 5 business days to let you know if they need additional documentation or information.
AmeriSave
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Call Customer Service: 1-888-700-4026
Monday through Friday from 8-5 PM Eastern time
Email Customer Service at customerservice@amerisave.com.
Mail:
AmeriSave Mortgage Corporation
Customer Service Department
3525 Piedmont Rd NE 8 Piedmont Center, Suite 600
Atlanta, GA 30305
New American Funding
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Phone: 800-893-5304
Email: customercare@nafinc.com
Axos Bank
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact loan servicing: (888) 862-8097
Fairway Independent Mortgage
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact form is here.
Quicken Loans
There is no specific information on how to file a claim after a death, we suggest contacting their support team.
Client Relations Phone Number: (800) 863-4332.
Consumer Direct
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Email: customercare@cdmtg.com
Phone: (855) 790-7811
First Republic
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact form is here.
United Shore Financial
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact form is here.
CrossCountry Mortgage
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact form is here.
PrimeLending
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact form is here.
Movement Mortgage
There is no specific information on how to file a claim after a death, so we suggest contacting their support team.
Contact form is here.
