Pay a Mortgage After Death
When someone dies, all of his debts must be settled before any funds or property can be distributed to the heirs. That includes outstanding mortgages in the name of the deceased. The only individual authorized to handle the financial affairs of a recently deceased person is the executor. The executor, named by the will, is usually a lawyer in the employ of the family of the deceased. In some cases, it may be a family member or trusted friend.
Instructions
1. Review the will before proceeding. The will is often specific about meet current debts. For example, the will may stipulate that the house should be sold to pay the mortgage, or that it should not be sold so it can be transferred to heirs. Even if the will doesn't mention the mortgage, the law obligates the executor to try to settle all debts as well as the assets of the estate make it possible to do so.
2. Register the will with the local probate court. Only the executor can do this. Once the will has been registered, the estate can be further managed.
3. Take stock of the remaining assets of the estate, including cash, securities, real estate, valuable items such as antiques, art, or bullion, bank accounts, and anything else with a cash value. Review all the bills of the estate and outstanding debts. Ordering a copy of the credit report of the deceased will facilitate this process.
4. Arrange to repay the mortgage using a portion of existing assets. If there are insufficient assets to cover the mortgage, the house may be sold to meet the debt. An alternative is that one of the heirs may pay the mortgage or other debts themselves. Such a move may not entitle the heir to the house unless the will also stipulates that they should take possession of it.
Tags: After Death, assets estate, Mortgage After, Mortgage After Death, should sold