Can I take over my mother's mortgage if she died?

Asked by: Mr. Edd Pfannerstill  |  Last update: March 16, 2025
Score: 4.7/5 (38 votes)

Mortgage: Federal law requires lenders to allow family members to assume a mortgage if they inherit a property.

Can I take over my deceased parents' mortgage?

If you're inheriting a mortgaged home from a relative, you can keep the mortgage in that relative's name, or assume it. However, relatives inheriting a mortgaged home must live in it if they intend to keep its mortgage in the deceased relative's name.

Can I take over my mom's mortgage?

Yes, even if the house is not paid off. The lender has to agree to let you assume or take over the mortgage. To do that, the lender must approve you as the borrower, since they will not have the house as collateral if the title is transferred away from your mother to you, but the loan obligation remains with your mom.

Can I assume the mortgage on an inherited property?

If you inherit a house with a mortgage, you can sell the house or assume the mortgage yourself. You should determine the equity and costs before making any final decisions. You might also consider refinancing to lower the interest rate or monthly mortgage payments.

What happens to my mom's house when she dies?

If the Court does not sell the home, it will be distributed according to your state's Next of Kin laws. In most areas the progression of property ownership will go to a spouse, child, parent, or sibling (in that order).

Mortgage Minute: Taking Over a Mortgage When Your Loved One Dies

25 related questions found

Do I inherit my parents' mortgage?

Your mortgage doesn't just disappear when you pass away. If you've bequeathed your home to a beneficiary, they'll inherit the balance on your home loan as well as the property itself. If the lender doesn't receive prompt payment, it can impact your credit score or even lead to foreclosure.

How long can a mortgage stay in a deceased person's name?

No, a mortgage can't remain under a deceased person's name. When the borrower passes away, the loan won't disappear. Instead, it needs to be paid. After the borrower passes, the responsibility for the mortgage payments immediately falls on the borrower's estate or heirs.

Is it a good idea to assume a mortgage?

It depends. A mortgage takeover can be beneficial in certain situations, such as when the seller's original mortgage has a lower interest rate than what is currently available on the market. However, the process of assuming a mortgage can be complex and costly, and not all buyers will qualify.

What are the disadvantages of inheriting a house?

Inherited properties can come with financial responsibilities such as existing mortgages, unpaid property taxes, maintenance costs, and insurance requirements. Be aware of hidden costs, including emergency repairs, property management fees, and legal expenses.

Who is the successor of a mortgage?

A Successor in Interest is a party, other than the original mortgage borrower, who has an ownership interest in the property that serves as collateral for a mortgage obligation. A Successor in Interest usually occurs when an heir is bequeathed property that is subject to a mortgage.

Can you legally take over someone's mortgage?

An assumable mortgage allows you to take over someone else's home loan, often at a lower interest rate. Here's how it works: You're able to get a lower interest rate than the existing borrower. This can help you lower your monthly payments by making them more affordable.

Should I take over my parents' house?

To make the best decision, you'll first need to assess your parent's financial situation and whether they can afford senior living. If they don't need to sell their house, you and your siblings should understand the responsibilities of eventually inheriting a house.

What happens if husband dies and wife is not on the mortgage?

If your spouse passes away, but you didn't sign the promissory note or mortgage for the home, federal law clears the way for you to take over the existing mortgage on the inherited property more easily.

Can I assume my mother's mortgage?

Relationship Requirement: Typically, lenders allow mortgage assumption only for immediate family members, such as parents, children, or siblings. Ensure that your relationship with the family member meets the lender's criteria.

Can a mortgage be forgiven after death?

In most cases, the responsibility of the mortgage will be passed to the beneficiary of the home if there is a will. If you applied for your mortgage with a co-borrower or co-signer, the solution is relatively simple: The other party must continue paying the loan.

What not to do when someone dies?

What Not to Do When Someone Dies: 10 Common Mistakes
  1. Not Obtaining Multiple Copies of the Death Certificate.
  2. 2- Delaying Notification of Death.
  3. 3- Not Knowing About a Preplan for Funeral Expenses.
  4. 4- Not Understanding the Crucial Role a Funeral Director Plays.
  5. 5- Letting Others Pressure You Into Bad Decisions.

Is it a good idea to inherit your parents' house?

Inheriting a home entails a range of financial responsibilities that can quickly add up. Property taxes, insurance premiums, ongoing maintenance costs and unexpected repairs can significantly strain beneficiaries' financial resources.

Which property is not inherited?

A broad categoty of non-inherited properies can be thought of as "layout properties": properties which change the size of the element in some way, or how it interacts with the elements around it. These properties include things like margin , padding , height , width , box-sizing , position , and display .

What happens if you inherit a house that still has a mortgage?

A deceased person's mortgage becomes the responsibility of the person inheriting the home. The heir has several options, such as moving into the home and assuming the mortgage, buying out other heirs if they also inherited a portion of the property, or selling the house and using the proceeds to pay off the mortgage.

Can you take over a mortgage if someone dies?

The right to potentially assume (take over) the mortgage.

All successors in California have a right to apply for an assumption of the loan, as long as the loan is assumable. The servicer may evaluate your creditworthiness, including your credit scores, when considering you for an assumption.

How can I tell if my mortgage is assumable?

Not all mortgages are assumable, but you can tell if you have one by the language in your note and mortgage. You can also find out by speaking to one of our assumption specialists at 1-800-340-0570. If you have an existing assumable mortgage, you may be able to add or remove borrower(s) through an assumption loan.

Why is it not good to assume?

When we assume something, sometimes our minds are already made up before knowing the details. Assumptions can also lead to expectations, which can lead to disappointment, which can leave us feeling bad. The problem with making assumptions is that we are likely to believe they are true when, in fact, they may not be.

Can I stay in my mother's house after she dies?

It depends. There are many factors involved in determining whether a child can live in a deceased parent's house after they die, including the terms of the will or trust, whether your deceased parent's spouse is still alive, who inherits the house, and the discretion of the personal representative or trustee in charge.

Can a deceased person be removed from a mortgage?

To get the deceased borrower's name removed from the mortgage: Send the borrower's death certificate to your mortgage lender. Follow up every 48-hours to make sure they received the death certificate. Ask them to open up a request to have the deceased borrower's name removed from the loan.

What happens if a will is not followed after death?

A probate court monitors the probate process, which means the probate court can also have an executor removed. You can petition the court to have the executor removed, and once the old executor is removed, the court will find another representative to handle the estate.