What Should I Do If I am Inheriting a House That Is Not Paid Off?

In Florida, a house that still has debt, liens, or other encumbrances may pass to heirs with these clouds on title intact. If you and the inherited property qualify as exempt from “due-on-sale” clauses (as discussed in this article), then you may simply take over the mortgage payments.

If you do not qualify as exempt, the lender may make all the remaining debt under the mortgage due and payable upon learning of the borrower’s passing. In such an event, you may be able to qualify to assume the mortgage. Note that there are often several other steps involved including the possible need for probate, so an experienced attorney can discuss which options may be best for you to take in light of your circumstances.