The answer is maybe because Individual cases always vary, and your circumstances may have underlying facts or conditions that may affect whether a mortgage may stay in a decedent’s name.
The general rule is that a mortgage may not stay in a deceased person’s name. However, exceptions may apply.
Generally, if a person dies, the title will transfer. If title transfers, it invokes a “due-on-sale” clause.
“Due-on-sale” clauses can be fought with certain exemptions under federal law, including when property transfers to a spouse or child of the borrower on their death and the mortgage was on the family home.
If you're the heir of a deceased person who still has a mortgage on their property, you'll need to take action immediately.
The best way to deal with a deceased person's property is to consult a probate and real estate attorney to review mortgage documents to determine whether an exemption to the due-on-sale clause applies to your situation.
Published: Oct 9, 2022
Updated: Jul 30, 2023
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