Q: After a mortgage holder has died, what happens to the mortgage? Thank you.
If someone has extended and is holding a personal mortgage to another person for real estate, and receiving payment every month, and then they die, what happens to the mortgage? What is the process for that mortgage? Does it remain in the deceased persons name and still paid to them? Or Is the mortgage paperwork redone with the name of the beneficiary of the persons estate? Thank you for any advice.
A: The mortgage stays with the property and the estate is responsible for it as part of probate, you to be sure should make a claim in the probate for what you are owed (statement of claim). In general, the estate will pay it, or the beneficiaries take it over and continue to pay it. Because this is a personal mortgage and non-traditional lender loan, you need to stay on top of it, contact the estate (probably via an attorney) and make a claim I would advise as a creditor of the estate. If you know the people/family taking over, you should probably reach out to them as well. Also, and most vitally, what does your personal mortgage agreement say (if anything exists this should/must be reviewed).
A:
If the payee of a mortgage dies, the mortgage is still enforceable. The personal representative of the estate has the right to collect the mortgage payments, foreclose on the mortgage, and otherwise take actions that they deceased would have been able to take until such times as the estate is settled. When the estate is settled, the personal representative of the estate will transfer the mortgage by assignment from the deceased to the beneficiaries or heirs of the deceased.
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