Do I have to tell the mortgage company of death?
Asked by: Rhiannon Ruecker | Last update: January 21, 2026Score: 4.7/5 (43 votes)
Do you have to notify a mortgage company of death? Unfortunately, while your loved ones might be dealing with grief and trying to manage your affairs, your financial obligations will continue to demand attention. It's essential to inform the mortgage company about a borrower's death as soon as possible.
What happens if I don't notify the mortgage company of death?
Your mortgage lender still needs to be repaid and could foreclose on your home if that doesn't happen. In most cases, the responsibility of the mortgage will be passed to the beneficiary of the home if there is a will.
How long can a mortgage stay in a deceased person'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 the title transfers, it invokes a due-on-sale clause.
Who is responsible for the mortgage after death?
If the mortgage had a co-signer, the surviving borrower must continue making payments. If the house has been bequeathed to a beneficiary, they must continue making payments or sell the house. Otherwise, the lender could still initiate a transfer of ownership, and the foreclosure could severely damage the heir's credit.
Can the bank call in the mortgage of a parent who passed away?
That said, they aren't required to put the mortgage into your name unless you do a formal assumption, but they also cannot foreclose or call the loan due when the transfer was due to the death of the lienholder and you have inherited.
When to Notify a Mortgage Company of Death? - CountyOffice.org
How to transfer ownership of a house with a mortgage after death?
To take over the mortgage of an inherited house, you'll need to talk to the loan servicer first and let them know you've inherited the property. You'll likely need to provide proof of death and documents that prove you're the rightful heir to the home.
What not to do when someone dies?
- Not Obtaining Multiple Copies of the Death Certificate.
- 2- Delaying Notification of Death.
- 3- Not Knowing About a Preplan for Funeral Expenses.
- 4- Not Understanding the Crucial Role a Funeral Director Plays.
- 5- Letting Others Pressure You Into Bad Decisions.
Can a mortgage be forgiven after death?
No, mortgage debt isn't forgiven after death. Instead, it becomes the estate's responsibility, and its assets can be used to pay off the mortgage.
How long do you have to transfer property after death?
Timelines for transferring property after the owner's death vary by state and can range from a few months to over a year.
What happens when you inherit a mortgage?
Despite the borrower's demise, the mortgage on the home still needs to be repaid and kept current while the estate gets straightened out. If mortgage payments are not made, heirs may face late payment fees or risk losing the home to foreclosure if too much time passes without payments.
Can a child assume a deceased parents' mortgage?
Mortgage: Federal law requires lenders to allow family members to assume a mortgage if they inherit a property.
How long can you keep a house in a deceased person's name?
The Hive Law indicates, "A house can stay in a deceased person's name until either the probate process is completed or legal actions require a change in ownership. Typically, the probate process takes 6 months to 2 years, depending on the jurisdiction and complexity of the estate.
What happens if husband dies and wife is not on the mortgage?
If you inherit the house, you can assume the mortgage without triggering a due-on-sale clause, thanks to the Garn-St. Germain Act. If your name isn't on the mortgage, you may still have options, like refinancing or selling the home to pay off the balance.
What happens if you don't report a death to the bank?
If the bank isn't informed of the owner's passing and the account goes dormant, the account may be subject to escheatment, which turns the funds over to the state government. Escheatment generally occurs after a few years of abandonment. Read: Best Savings Accounts.
How do I remove my name from my mortgage after death?
- Release of liability – You can ask your lender for a release of liability. This is a document that releases a borrower from their obligation to pay back the loan. ...
- Refinance – The only other option is to refinance the mortgage.
Does a homeowner have to disclose a death in a house?
If you live in California, for example, you must disclose whether any deaths occurred on the property within the last three years. Few other states' laws contain such a requirement, however.
Is it illegal to keep utilities in a deceased person's name?
Yes, that is fraud. Someone should file a probate case on the deceased person.
How long can you keep an estate open after death?
State laws typically govern the specific timeframe for keeping an estate open after death, but the average is about two years. The duration an estate remains open depends on how fast it goes through the probate process, how quickly the executor can fulfill their responsibilities, and the complexity of the estate.
Can I live in my deceased mother's house?
Yes, But it's Time to Start Making Other Arrangements
However, if one beneficiary lives in the property to the exclusion of others who also inherit the property, litigation may result between them. In California, any property owned by an individual is subject to probate, including real estate.
Who notifies the mortgage company of death?
The surviving spouse or heir must communicate with the lender immediately after the borrower's death. The time limit is around 30 days to notify the lender. The lenders have procedures in place for this situation.
What do mortgage companies do when someone dies?
Typically, the mortgage company will require a copy of the death certificate. If no one notifies the mortgage company or pays the mortgage, the loan servicer could begin foreclosing on the home.
Is it hard to sell a house that has a reverse mortgage?
When you have a reverse mortgage, you retain title to the property and are free to sell it anytime you see fit. However, the reverse mortgage loan becomes due if you decide to sell, so be sure your home's current value (or your savings account balance) is high enough to pay off the loan and cover the closing costs.
Who gets the $250 social security death benefit?
When a Social Security–insured worker dies, the surviving spouse who was living with the deceased is entitled to a one-time lump-sum death benefit of $255. If they were living apart, the surviving spouse can still receive the lump sum under certain conditions.
Why shouldn't you always tell your bank when someone dies?
If you contact the bank before consulting an attorney, you risk account freezes, which could severely delay auto-payments and direct deposits and most importantly mortgage payments. You should call Social Security right away to tell them about the death of your loved one.
Who needs to be notified when someone dies?
When a family member or friend has died, it is important to notify various government agencies, banks, creditors and credit reporting agencies of the death. To reduce the risk of identity theft, these notifications should be made promptly after the death.