Home › Guides › Property & Assets › Contact Mortgage Lender or Loan Servicers
Contact Mortgage Lender or Loan Servicers
Property & Assets
Notify the mortgage lender or loan servicer of the death as soon as possible. This prevents missed payments, interest penalties, or legal action while the estate is being settled. Lenders may require a death certificate and proof of your authority. Ask the lender to place a temporary hold. Do not stop payments unless advised by an attorney or the lender.
Frequently Asked Questions
Legal
What happens to a mortgage when someone dies?
The mortgage does not disappear—it remains a lien against the property. If there is a surviving co-borrower or spouse, they can continue making payments and keep the home. Under the federal Garn-St. Germain Act, lenders cannot call the loan due when ownership transfers to a spouse, child, or relative due to death. Notify the lender promptly, but know your rights—you are protected from immediate foreclosure.
What if the deceased was a co-signer on someone else's mortgage?
If the deceased co-signed a mortgage for someone else, their death does not automatically change the loan terms. The primary borrower remains responsible. However, some lenders may treat the co-signer's death as a default event and call the loan due—review the specific loan agreement. The primary borrower should contact the lender to discuss options, which may include refinancing to remove the deceased co-signer.
Process
Can the bank foreclose if I stop making payments?
Yes. Even during probate, mortgage payments must continue to avoid default. If the estate cannot make payments, contact the lender immediately to discuss forbearance options—most lenders will grant a temporary pause of 3-6 months during estate settlement. Do not simply stop paying without communicating, as this will start the foreclosure clock (typically 90-120 days of missed payments before proceedings begin).
Costs
What happens to a reverse mortgage after death?
When the last borrower on a reverse mortgage dies, the loan becomes due. Heirs typically have 6 months (with possible 6-month extensions) to repay the loan, sell the home, or deed the property to the lender. The good news: reverse mortgages are non-recourse loans, meaning heirs are never personally liable for more than the home's value. If the home is worth more than the loan balance, heirs keep the difference.