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.
Our talented and experienced attorneys and team members come from diverse backgrounds, but we share a common belief in doing right by those that entrust us with their legal matters. At Easler Law, we bring real-world experience to the table, we will critically think for you, we will do the work right, and we will never make excuses.
Under the Corporate Transparency Act (CTA), businesses must report ownership info to combat financial crimes or face penalties.Learn More
PublicationsDon’t Say a Little Prayer: Estate Planning Lessons from Aretha Franklin's Probate Trial