When someone passes away, the mortgage on their property doesn't just disappear. Here’s what typically happens: Mortgage Remains in Force: The mortgage must still be paid. If payments are not made, the lender has the right to foreclose on the property. Estate Responsibility: The responsibility for the mortgage payments usually falls to the deceased person's estate. The executor of the estate (the person legally appointed to manage the deceased's affairs) will use the estate's assets to continue making payments. Transfer to Heirs: If the property is inherited by someone, such as a spouse or children, the heir usually takes over the mortgage payments. In many cases, federal law allows for the mortgage to be transferred to the heir without requiring a new loan. Refinancing: The heir may choose to refinance the mortgage to get more favorable terms or to remove the deceased's name from the mortgage. Sale of Property: If the estate or the heirs cannot afford the mortgage, or if selling the property is part of settling the estate, the property can be sold. The proceeds from the sale would first go to paying off the mortgage, with any remainder going to the estate or heirs. Insurance and Other Protections: Some people have mortgage insurance or other plans in place that pay off the mortgage in the event of their death, which can simplify matters for their heirs. The exact process can vary depending on the terms of the mortgage, the laws of the state where the property is located, and the specifics of the deceased's will and estate plan. If you would like my guide to the 10 best ways to get the best deal on a new house go to https://lnkd.in/eARdDKe3