Short answer

After a homeowner dies in Mississippi, the mortgage does not automatically disappear. To take over the mortgage you generally must (1) identify how title to the house will transfer, (2) notify and work with the lender, and (3) either assume the loan (if the lender allows), refinance the loan in your name, or have the estate pay it off. You will likely need to be appointed personal representative (executor/administrator) or otherwise acquire title through probate or a non-probate transfer before the lender will deal directly with you.

Detailed answer — step by step (Mississippi-focused)

1. Find out how the house is titled

Who owns the house on the deed determines the first step:

• If the deed names the decedent alone, the property will pass by the decedent’s will or Mississippi intestacy rules and typically through probate.
• If the deed names the decedent and another person as joint tenants with right of survivorship, the survivor often becomes the owner automatically on death — but the mortgage still remains a lien on the property. You must notify the lender and confirm whether the mortgage stays in place or must be paid/refinanced.
• If there is a transfer-on-death deed, beneficiary deed, trust, or community property arrangement, those non-probate methods may move ownership without a full probate; follow the instrument’s procedure and give the lender the new owner’s information.

2. Locate the mortgage and related loan documents

Gather the loan origination paperwork, recent mortgage statements, and the deed. The mortgage and note show the lender, loan servicer, interest rate, and whether an assumption is allowed or if there is a due-on-sale clause. Even if there is a due-on-sale clause, federal law limits enforcement in certain death-related transfers (see below).

3. Notify the lender/servicer

Call the loan servicer, explain the homeowner’s death, and ask what documentation they require to (a) put the account in the decedent’s estate status, (b) set up a contact person for communications, and (c) review options to assume or refinance. The lender will typically ask for a death certificate and probate paperwork or evidence of the successor owner.

4. Determine who has authority to act for the estate

If the decedent left a will, the named executor should be appointed by the probate court. If no will exists, Mississippi’s intestacy process allows the court to appoint an administrator. The personal representative has authority to: collect assets, pay debts, and sell estate property (subject to court approval or the will’s terms). Many lenders require proof of appointment before negotiating loan assumption or a payoff.

Start with the local county probate court or the Mississippi Courts website for instructions on opening an estate: https://courts.ms.gov/.

5. Options for handling the mortgage

Once you have authority or clear title, the usual options are:

• Assume the loan: Some mortgages are assumable. The lender may require you to qualify under its credit and income standards and to sign an assumption agreement. If approved, you step into the loan obligations.
• Refinance in your name: You can apply for a new mortgage to pay off the existing loan. This is often the route people choose if the lender will not allow an assumption or if you want a different rate/term.
• Have the estate pay off the loan: If the estate has sufficient funds, the personal representative may pay the mortgage from estate assets and transfer clear title to heirs.
• Sell the house: The personal representative can sell property to satisfy the mortgage and distribute any surplus to heirs after creditor claims are paid.

6. Understand the lender’s “due-on-sale” rights and a key federal protection

Many mortgages include a due-on-sale clause allowing the lender to demand full repayment if ownership changes. However, federal law includes exceptions for certain transfers because of a homeowner’s death. The Garn–St. Germain Depository Institutions Act contains language limiting a lender’s ability to enforce a due-on-sale clause in transfers to a relative upon the borrower’s death. See the federal statute here: 12 U.S.C. § 1701j–3. Even with this protection, lenders may still require documentation and qualifying paperwork before allowing an assumption or leaving the loan in place.

7. Consider creditor claims, taxes, and homestead rights

The mortgage is a secured creditor claim against the property; the lender can enforce the lien if payments stop. Mississippi has procedures for probate creditor claims and also recognizes certain homestead protections for surviving spouses and minor children. The personal representative must follow Mississippi probate procedures for publishing notice to creditors and resolving claims before distributing estate assets. For guidance on starting probate in Mississippi, use the Legislature/Courts resources: https://www.legislature.ms.gov/ and https://courts.ms.gov/.

8. Practical checklist to present to the lender or probate court

1. Certified death certificate(s)
2. Original deed or recorded copy
3. Copies of the mortgage note and current statements
4. Will (if any) and any trust documents
5. Proof of appointment as personal representative or documentation of title change (e.g., survivorship affidavit, beneficiary deed)
6. Personal identification and financial documents if you plan to assume or refinance

9. If the lender threatens foreclosure

Act quickly. Contact the lender’s loss mitigation or probate assistance team, provide the required documents, and ask about temporary relief while you arrange probate or refinancing. Mississippi law provides procedures for foreclosures and creditor claims; if foreclosure seems imminent, consult an attorney who handles probate and mortgage issues promptly.

Helpful Hints

• Do not stop mortgage payments without talking to the lender. Missed payments can trigger foreclosure even if you are in probate.
• If you are on the deed as joint owner, get a copy of the death certificate and recorded affidavit to show title has passed, then contact the servicer to discuss next steps.
• Keep detailed records of all calls and documents you send to the lender (dates, names, and what was discussed).
• Ask the lender for a written statement of what they will accept as proof of authority to act for the estate.
• If you cannot qualify for the current loan and cannot refinance, consider listing the house for sale through the estate so the mortgage can be paid from sale proceeds.
• Free or low-cost probate information may be available from county probate clerks in Mississippi; use the Mississippi Courts website to find local court contacts: https://courts.ms.gov/.
• Because rules and procedures can vary by lender and by county, get local legal advice if the situation is complex or if the lender is uncooperative.

When to get an attorney

Consider hiring a probate or real estate attorney if you face any of the following: contested probate or will, lenders refusing to work with heirs, imminent foreclosure, complex estate with multiple creditors, questions about homestead or surviving-spouse rights, or if a lender demands payoff and you need to negotiate. An attorney can help you obtain the court appointment you need and negotiate assumption or refinancing terms.