When homeowners have a will, this allows them to express their wishes for their home and other assets. So with a little preparation, you get to decide what happens to your mortgage after you die.

If you name an heir, it is important to make sure they are capable of making mortgage payments—or direct other funds from your estate to help them. You wouldn’t want your beneficiary to suffer the consequences of a foreclosure.

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is always here to help answer the questions that come up for you as a homeowner, and the answers don’t stop at

home and auto insurance

. So for peace of mind, let’s take a look at what happens to your mortgage when you die.

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Understanding your estate

When you die, your house becomes a part of your estate, which means that its potential sale value is counted among your assets, and your remaining mortgage payments are part of your debts.

All of your debts must be settled after your death, which is typically the job of the executor of your estate. If you have a will, you would name an executor in that document. If a homeowner dies without a will, the state will name an executor (usually the next-of-kin).

If I have a mortgage and I die, what happens?

If you die before your house is completely paid off, there are a couple of different options for what could happen. This decision will depend on your other assets, whether you have heirs, and how much other debt you have.

The most common options for your home are to transfer ownership to someone else or to sell it.

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Transfer of ownership

If you have a will, you can name a person to inherit your home (and the remaining mortgage). Doing this means that the mortgage lender has to respect your wishes and transfer the loan to your heir without making them prove that they

qualify

for the loan.

The same is true if you have a co-borrower (like a spouse or other family member). If there is a co-borrower on your loan, ownership of the house will default to them.

Whether you leave your home to a

co-borrower

or another person, ensure heirs can afford to pay the mortgage on time each month. There are a couple of ways to help make sure of this:

Direct other funds from your estate (like life insurance) to pay off or reduce the remaining mortgage

Set up a trust account to continue paying some portion of the mortgage each month

Create a payable-on-death savings account. This type of account is accessible to your heir within a few days of submitting a death certificate, so these funds can be accessed quickly to make mortgage payments or even pay off more pressing debt

Sale of the house to pay other debts

If a homeowner dies with more outstanding debt than the estate can cover, the house must be sold to pay off other debts. When this happens, any remaining funds from the sale of the house go to the heir.

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What to do if you inherit a home

If you are the beneficiary of someone else’s home upon their death, it can feel overwhelming to suddenly find yourself thrust into homeownership. It is important to know that you are not required by law to take over payments or keep the home.

Being named as the heir just means that you can choose to keep the home without needing to qualify or get a new loan yourself. There are a few options to consider if this is the case:

Take over the mortgage payments if you can (and want to) afford them. To do this, the executor of the estate will contact the mortgage lender, and you will all work together to transfer ownership of the home and mortgage to you.

If you want to keep the home but can’t make the mortgage payments, you can ask about

refinancing

. You may qualify for a lower interest rate or be able to get a longer-term loan that would make payments smaller.

Sell the home. If you aren’t interested in keeping the home, you can sell it and keep any money left after the mortgage is repaid.

Pay off the mortgage. If the deceased homeowner left other funds like insurance or savings, you can use that to pay off the mortgage so that you own the house free and clear.

Let the lender foreclose. As long as the home is only in the name of the deceased homeowner, you can opt to let the mortgage lender foreclose. In this case, you forfeit any profit from the sale, but you are also not responsible for any outstanding debt.

How to get information on the mortgage

To get information on the mortgage for a house you’ve inherited, you will need to contact the loan servicer. This information will be available to the executor of the estate.

The lender will need a copy of the death certificate before they can share information about the home’s outstanding loan balance.

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How to take over a mortgage

If you decide to take over the mortgage for a house you have inherited, you will work with the loan servicer to get the loan transferred over.

You will not need to qualify or show

proof of employment

, etc.—you will just need to show the death certificate and the will of the previous owner.

Finding affordable home insurance

If you have inherited a home, you will need to make sure you have the right homeowners insurance to protect your property. Home and auto insurance app

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Can you sell a house when the owner dies?

Yes. The heir or the executor of the estate can decide to sell a home upon the owner’s death. Proceeds from the sale would go to pay any other remaining debts, and any excess money belongs to the heir(s).

How old do you have to be to inherit a house?

You must be 18 years of age to inherit any money or property. If a homeowner wishes to leave a house or other assets to a minor child, they must set up a trust and name an adult trustee to manage the assets until the child is of age.

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