This article explains, in plain language, what typically must happen if you want to keep your father’s house and take over the mortgage after he dies. It covers how title and the mortgage interact, common lender rules, Maryland probate pathways, and practical next steps. This is educational only and not legal advice.

Short overview: There are two separate legal issues: (1) who owns the house after your father dies (title), and (2) what happens to the loan that was secured by the house (the mortgage). You must handle both. Ownership transfers through the deed and through Maryland probate or alternative transfer methods. The lender controls the loan and may require an assumption, payoff, or refinancing. Often the lender must be notified and will either allow an assumption, demand payment, or permit you to refinance.

Step-by-step: What you should do first

1. Locate key documents. Find the deed, the mortgage or deed of trust, the promissory note (loan paperwork), the will (if any), and any trust documents. The deed and mortgage identify the borrower and the legal owner.
2. Contact the lender right away. Tell the lender the borrower has died and ask what they require. Ask whether the loan is assumable, whether they will allow you to assume the loan, and what documentation they will need. Get the lender’s requirements in writing.
3. Check title and how ownership will pass. Ownership may pass by (a) title already held jointly with right of survivorship, (b) beneficiary designation such as a living trust or transfer-on-death deed, (c) by will, or (d) via Maryland probate if none of the above applies. The route controls what authority you have to deal with the house and the lender.
4. Open probate or use a simplified transfer if available. If title passes under a will or intestacy and no automatic transfer mechanism exists, you may need to open an estate administration case in Maryland probate court. Maryland’s Judiciary provides guidance on probate and estate administration: https://www.mdcourts.gov/legalhelp/willsestate. For very small estates, Maryland has simplified procedures that may let a personal representative or heir obtain title without full probate.
5. Understand the difference between assuming a mortgage and refinancing. An assumption means taking over the existing loan terms and payment history. Some mortgages are assumable; some are not. If the lender will not allow an assumption, you may need to refinance the loan in your name to keep the house.
6. Watch out for any “due-on-sale” or acceleration clauses. Most mortgages include clauses that let the lender demand full repayment when ownership transfers. Federal law and lender policies influence enforcement. Lenders sometimes permit assumptions or refinance for heirs, but they may also call the loan due. If the lender threatens foreclosure, act quickly to negotiate or refinance.

How ownership transfer paths affect the mortgage

Ownership method determines who has legal authority to sign documents the lender will require.

• Joint ownership with right of survivorship: If the deed named you as a joint owner with right of survivorship, you become the sole owner automatically. You must still notify the lender; the lender may permit you to stay on the loan or require refinancing.
• Living trust or beneficiary deed/transfer-on-death instrument: If the property passes to you under a trust or a valid beneficiary deed, ownership transfers without probate. Provide the lender with trust paperwork or beneficiary documentation.
• Title passes by will or intestacy: The personal representative named by the will (or an administrator appointed by the court if there is no will) controls estate property. The court’s letters testamentary or letters of administration will allow the representative to deal with the lender and transfer title. You may need to be appointed to act.

What the lender will typically require

Each lender has its own policies. Common lender requirements include:

• Certified death certificate for the borrower.
• Proof of your ownership or authority to act (deed, letters testamentary, trust documents).
• An application to assume the loan or a refinance application (credit check and income documentation).
• Payment of fees for processing an assumption or payoff.

If you plan to assume the loan without refinancing, confirm the lender’s assumption standards and whether a formal assumption agreement will be recorded.

Probate and Maryland resources

If the estate must go through probate, the Maryland Courts website explains the process, forms, and timelines you will encounter: https://www.mdcourts.gov/legalhelp/willsestate. For statutes and the Maryland Code, consult the Maryland General Assembly’s code resource: https://mgaleg.maryland.gov/.

Note: Maryland has procedures for small estates and for inventorying assets. If the property is the main estate asset, probate is often necessary before clear title can transfer.

Federal law and lender remedies

Federal rules and statutes can affect whether a lender can call a loan due when ownership transfers. For example, federal law (the Garn–St. Germain Depository Institutions Act) limits a lender’s power to enforce due-on-sale clauses in certain transfers. You can read the federal statutory language at the official government repository: https://www.govinfo.gov/ (search for the Garn–St. Germain Act). In practice, each lender interprets these rules and sets internal policies for assumptions, so you should get the lender’s position in writing.

Common scenarios and likely outcomes

• You are on the deed or joint owner: You own the house. Notify the lender. The lender may let you continue payments, require a refinance, or require documentation of survivorship.
• You inherit the house through a will or intestacy: You or the estate’s personal representative must use probate documents to transfer title. The lender may allow an assumption or require refinancing.
• Lender won’t allow assumption: You may need to refinance the mortgage in your name. If you cannot refinance or pay the loan, the estate may have to sell the property to repay the mortgage.

Practical checklist

1. Obtain several certified copies of the death certificate.
2. Find the original deed and mortgage documents.
3. Contact the lender and get their assumption/refinance requirements in writing.
4. Check whether the property can transfer outside probate (joint deed, trust, beneficiary deed).
5. Consult Maryland probate resources: https://www.mdcourts.gov/legalhelp/willsestate.
6. Get preapproved for a refinance if assumption is not allowed.
7. Talk to a Maryland estate or real estate attorney if the lender disputes authority, if creditors threaten foreclosure, or if estate administration is complex.

Helpful Hints

• Do not stop mortgage payments while you sort title and lender issues — missed payments can prompt foreclosure. Contact the lender immediately to explain the situation.
• Keep written records of every conversation with the lender, including dates, names, and what was said or requested.
• Certified death certificates are required by virtually every institution; order several at once from the Maryland Department of Health (vital records).
• If the mortgage balance is low relative to the house value, lenders are more likely to allow an assumption or refinance. If the estate lacks cash, a sale may be necessary to satisfy the mortgage.
• Ask the lender if a short-term forbearance or loan modification is available while you apply for refinance or complete probate.
• Even if a loan is technically assumable, the lender usually has credit and underwriting requirements. Expect to provide proof of income, credit history, and assets.
• Make use of Maryland Court self-help centers or clerks’ offices if you must open probate and cannot afford private counsel right away: https://www.mdcourts.gov/legalhelp.