Detailed Answer

This section explains, under Massachusetts law, what typically happens to a home mortgage after a homeowner dies and what steps a person who inherits the house should take to “take over” payments or formally assume the loan. This is general information and not legal advice.

How mortgages and title interact after a homeowner dies

A mortgage is a lien on the property; the loan (the promissory note) is a separate obligation. When the borrower dies, the mortgage does not vanish. How the property and mortgage move forward depends on how title passes:

• If the house passes under a living trust, the trustee handles title transfer and the trustee or successor trustee deals with the lender.
• If the house passes by will or by intestacy (no will), the estate’s personal representative (executor/administrator) handles estate assets and debts through probate.
• If the house was owned jointly with rights of survivorship (e.g., joint tenants with right of survivorship), the surviving owner(s) generally take title automatically, but the loan may still remain in the deceased’s name.

Key Massachusetts rules and places to check

Probate procedures and the duties of a personal representative are governed by Massachusetts probate law. For the rules that control how an estate is opened and how the representative handles estate debts, see Chapter 190B of the Massachusetts General Laws (Mass. Gen. Laws ch. 190B) and the Massachusetts Probate & Family Court for local procedure:

• Massachusetts General Laws, Chapter 190B (Probate & Family Court matters)
• Massachusetts Probate & Family Court (information and forms)

Practical steps to take if you want to keep the house and its mortgage

1. Get certified copies of the death certificate. Lenders and the probate court will require an official death certificate.
2. Identify how title will pass. Find a will, trust, or determine whether the property is joint tenancy. If the decedent left a trust, contact the successor trustee. If not, the estate will usually go through probate and the appointed personal representative handles the property under Chapter 190B.
3. Contact the mortgage servicer immediately. Tell them the borrower died and request the current payoff amount, account history, and whether the loan is assumable. Ask whether they will permit a formal assumption or modification and what documentation they need.
4. Decide whether to accept the property subject to the mortgage. An heir or beneficiary can accept or decline property. Accepting real property that carries a mortgage means you are taking title subject to that lien. If you take title, keep making payments or arrange with the lender to avoid default while you pursue a permanent solution.
5. Check for options with the lender:
   • Assumption: Some lenders allow a transferee to formally assume the mortgage (with lender approval and usually a qualification process).
   • Refinance: If you qualify, you can refinance the mortgage into your own name to remove the deceased borrower from the loan.
   • Loan modification: If you cannot refinance or assume, a modification may be possible to change the payment terms.
6. Understand the lender’s rights on transfer. Many mortgages contain a “due-on-sale” clause that lets the lender accelerate the loan on transfer of title. Federal law limits the circumstances where a lender can enforce acceleration. Transfers by reason of the borrower’s death that transfer the property to a relative usually cannot trigger acceleration under federal law in certain situations. See the federal statute commonly called the Garn–St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3) for details and exceptions; discuss specifics with the lender or an attorney before assuming any risk.
7. If the estate needs to sell the house to pay debts: The personal representative has a duty to pay valid debts of the estate. In many cases the estate will sell the house to pay the mortgage if the estate lacks cash. If you want to keep the house, you may be able to buy it from the estate, refinance, or arrange a private agreement with the lender (with lender consent).
8. Use available probate procedures that may speed transfer. Massachusetts has procedures for small estates and informal probate in some circumstances. The Probate & Family Court can advise whether a streamlined process applies to your case.
9. Document everything and keep paying when possible. If you keep making payments, document them and keep records. Missing payments risks foreclosure even if title issues are unresolved.

Important federal rule to know (brief)

The federal Garn–St. Germain Act places limits on when a lender may accelerate a mortgage because of a transfer. Transfers resulting from the borrower’s death to a relative who lived in the property may be protected from enforcement of a due-on-sale clause in many circumstances. For the federal statutory language, see 12 U.S.C. § 1701j-3: 12 U.S.C. § 1701j-3 (Legal Information Institute). Always verify how this applies in your situation with the lender and, if needed, an attorney.

When you must involve probate or the court

If the decedent left a will or the property is part of the probate estate, the personal representative must administer the estate, which often includes paying debts or selling assets to pay debts. If no will exists, the court appoints an administrator and oversees distribution under Massachusetts intestacy rules (Chapter 190B). Consult the Probate & Family Court for forms and local directions: Massachusetts Probate & Family Court.

When to get legal help

If the mortgage servicer refuses to accept payments from you, threatens immediate foreclosure, or if title issues are complicated (multiple heirs, dispute over the will, trust conflicts, creditor claims), you should speak with a Massachusetts attorney who works with estates and real estate. If you are the personal representative, an attorney can explain duties and timelines under M.G.L. c. 190B and local probate rules: Mass. Gen. Laws ch. 190B.

Disclaimer

This article provides general information about Massachusetts law and is not legal advice. It does not create an attorney-client relationship. For advice tailored to your situation, consult a licensed Massachusetts attorney or the Probate & Family Court.

Helpful Hints

• Gather documents: death certificate, mortgage statements, deed, will/trust documents, recent property tax bills, homeowners insurance policy.
• Contact the mortgage servicer early and ask for the account history and payoff figure in writing.
• If you plan to qualify for refinance or assumption, get your credit and income documents ready.
• Keep making mortgage payments if possible until you have a permanent plan in place.
• Watch for scams: verify anyone who offers to “help” with the property and never sign documents without reading or getting independent advice.
• If the estate has limited cash, expect the personal representative to consider selling the property to pay mortgage debt; be prepared to offer a buyout or arrange financing if you want to keep the home.
• Use the Probate & Family Court’s website for forms and step-by-step guidance for opening an estate: Massachusetts Probate & Family Court.