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

Question

Does it pass to beneficiaries or does it go back to the mortgage company? Does it have to go through probate?

Answer 1

i have insurance on my mortgage, so if i die, the mortgage is paid in full and my wife and kids will be mortgage free.

ask your mom if she is insured

Answer 2

It goes through probate whetner there's a will or not. Probate judge decides the outcome. You can file a petition at the probate court either with or without a probate lawyer. If you are the only heir, more likely the probate judge will give you the title of the property. Meanwhile, somebody has to keep paying the mortgage. You can skip the hassle of probate by putting all her asset into a living trust & make you as a beneficiary. Then when she passes away to heaven, you get everything without paying any tax. This is the best way.

Answer 3

Your mother's estate becomes liable for her debt. Since the collateral for the mortgage is your mother's home, the home will be sold to retire the debt. If one of the survivors desires to retain the home, you will purchase the property from the estate, and your loan proceeds will retire your mother's mortgage.

Answer 4

It basally depends on what type of insurance your mom have. I know that with the proper insurance plan, all unpaid items that your mom has will no longer exist. So check out her insurance plan. Hope this helps you! Good Luck!

Answer 5

the bank can sell the house to pay of the note, if anything is left it goes to the heirs, but the note does not become the burden of the heirs, but your mom assets could be at risk to pay off the note

Answer 6

You inherit the debt.