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What Happens to the Mortgage in an Estate?

Estate Making Mortgage Payments

While most creditors must file a claim in court in order to get payment from an estate if the estate refuses to pay, a mortgage company does not. A mortgage company has a right to take possession of a house if the mortgage payments are not made.

Who Will Pay the Decedent’s Mortgage?

In most cases following the death of a borrower/homeowner, the mortgage company will not take any action as long as the monthly payments are made on behalf of the borrower.  If the estate is not settled, determining who will make the mortgage payments, and whether the payments should be made out of the estate assets should be decided according to instructions in the will. If there are no instructions in the will, the estate beneficiaries may wish to share the cost of making the mortgage payments. If only one person will inherit the real estate which is mortgaged, that person should continue to make mortgage payments or risk losing the property to the mortgage holder.

Getting Legal Help

Proper planning can help avoid any uncertainty in taking care of property and real estate in an estate. Estate Planning Attorney Elga Goodman can help you make life easier for your beneficiaries by creating a thorough plan. Contact us today at 973-841-5111.

Posted in: Estate Planning, New York Estate Planning