What Happens to a Mortgage When You Die?

If there is a co-signer on the loan, they will be responsible for paying the mortgage. Shutterstock

A mortgage goes on after your death. The lender will still require payment, or they'll foreclose. Whether you’ve willed your home to a relative or you died “intestate,” someone needs to pay.

But how does that work? Can anyone pay the mortgage, or does it need to be refinanced? Establishing your wishes ahead of time will help with a smooth transition and protect your heirs. They’ll be able to keep your home and avoid foreclosure.

Who’s Responsible for a Mortgage After Death?

When you pass, your debts are paid from your estate, and your executor uses your assets to pay any creditors.