Can a Mortgage Stay in the Name of a Deceased Person?

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.

Read this article for more information on whether a mortgage may stay in a deceased person's name.