Hello Dan The Real - Real Estate New You Can Use..
Is this email not displaying correctly?
View it in your browser .
HomeViewers.com ProbatePropertyAsst What Is My Home Worth?
Share Save

What Happens to My Mortgage When I Die?


While death is a little bit of a taboo topic, you are not the only one thinking about it and wondering, "What happens to my mortgage when I die?" Unfortunately, the mortgage payments don't just disappear. Truth is, this is something you need to think about in the unfortunate case that your mortgage outlives you, because if you default on your payments, the lender could foreclose on your home. This is not something you or your family wants to happen, which is why it is always smart to plan for the unthinkable.

This type of planning is usually done with an estate planning lawyer, who can help you put together a plan that will pass down your home to your children, grandchildren or whomever it is that you choose. Unfortunately, they don't just get a free home (unless of course it is paid for in full) — they also get the remaining mortgage payments that come with it.

If you mortgaged the property with a co-borrower, then the payments defer to them. The co-borrower would become the legal primary owner of the property and would reserve the right to live in it, under the assumption that they continue making payments and stay up to date with them. They also have the legal right to refinance the home or sell it. These laws tend to vary state by state, so make sure to double-check which apply to you.

If you don't have a co-borrower, then the co-signer takes the reins and decides what happens. This person then becomes responsible for making payments, selling the property or whatever it is that they choose to do. Just make sure the co-signer is aware of this and notifies the lender of the change, rather than just mailing in checks every month.

In the absence of both, you should be sure to designate a beneficiary of the property. This person would then become responsible for continuing payments or selling the property, same as a co-signer or co-borrower.

If you are nervous that the person you are leaving the property to might not have the funds to maintain it, consider adding some insurance. Options include life insurance or mortgage life insurance, also known as mortgage protection insurance, in order to assist the individual with payments and additional expenses.

In either case, the best plan of action is to prepare and be prepared for when the unthinkable happens. Draft a will or a trust and put all your wishes into writing. This is the best way to ensure that your assets will not only go to the individuals you choose, but also guarantees there won't be any family arguments on who gets to keep the house or who gets burdened with the mortgage payment. Protect yourself and protect your loved ones. If you need assistance or further insight, feel free to give me a call. I'm always here and happy to help. 

Share Save

Your Comments

Dan The Real Estate Man
Dan The Real Estate Man
(562) 618-4993
Century 21 Classic Estates
13217 South St.
Cerritos, CA 90703
Friend Me on Facebook
Follow Me on Twitter
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © HomeActions, LLC All rights reserved.

This email was sent to: dansellsrealestate@gmail.com

Mailing address: