Detailed Answer

When a homeowner dies in Rhode Island, the path to keeping or formally taking responsibility for the mortgage depends on two related but separate issues: (1) who now owns the house; and (2) what the mortgage lender requires. Below is a clear, step-by-step explanation of how ownership and mortgage responsibility commonly transfer, what documents you should gather, and the options you can expect from the lender.

1) Confirm who holds title to the property

Ownership controls whether the property passes outside probate (immediately to a survivor) or through probate (as part of the estate).

• If the deed names more than one owner with right of survivorship (e.g., joint tenants or tenants by the entirety), the surviving owner(s) usually become the sole owner automatically. No probate is needed to change title.
• If the property is held in a revocable trust, the trust document controls transfer and the successor trustee can transfer title without probate.
• If the deed is in the decedent’s name alone and there is no valid transfer-on-death instrument, the property generally becomes part of the probate estate and must be transferred through the probate process before title can be issued to an heir or buyer.

To check title: order a copy of the deed from the local city/town land records, or request a title report from the mortgage company or a title company.

2) Gather critical documents

Prepare these items before you contact the mortgage servicer or the probate court:

• Certified copy of the death certificate.
• Copy of the deed and current mortgage statement (including loan number and servicer contact).
• The decedent’s will or trust documents (if any).
• Proof of your identity and relationship (if needed).
• Recent property tax bills and homeowners insurance policy information.

3) Contact the mortgage servicer promptly

Call the mortgage servicer (not just the local bank branch). Tell them the borrower has died and supply a death certificate. Ask these specific questions:

• Is the loan assumable (some loans allow formal assumption)?
• What documentation do you require to add a borrower, approve an assumption, or set up payments from the estate?
• Will the servicer enforce a due-on-sale clause if title transfers? (See note on federal rules below.)
• Is a loan modification, forbearance, or short-term payment plan available to keep the mortgage current while the estate is administered?

4) Common paths to continue payments or take over the mortgage

• Surviving title holder keeps paying: If you are already on title as a joint owner, continue making payments. Notify the servicer and provide proof of survivorship (copy of death certificate and recorded deed showing survivorship).
• Assumption: Some mortgages (and some government-backed loans) are formally assumable. If the servicer allows assumption and you qualify under their credit and underwriting standards, the servicer will modify loan records and you become responsible for the mortgage.
• Refinance: You can refinance the loan into your own name (common when assumption is not permitted or when you want better terms). Refinance requires qualifying for a new loan.
• Estate pays while title transfers through probate: If the house is in probate, the executor or administrator can keep paying the mortgage from estate funds to avoid foreclosure while transferring title to heirs.
• Sell the house: If heirs don’t want the home or can’t qualify for the loan, the estate can sell the property and use sale proceeds to pay off the mortgage.

5) Probate basics in Rhode Island

When the decedent owned property alone and there is no trust or survivorship interest, title generally passes through probate under Rhode Island law. The probate court process appoints an executor or administrator who can sell or transfer property and pay debts of the estate. For information about Rhode Island probate procedures, see the Rhode Island Judiciary’s Probate and Family Courts: https://www.courts.ri.gov/Courts/ProbateFamilyCourts/Pages/default.aspx. You can also review Rhode Island statutes and search Title 33 (Decedents’ Estates) at the Rhode Island General Assembly site: https://www.rilegislature.gov/Statutes/.

6) Due-on-sale clauses and federal limits

Many mortgages include a “due-on-sale” clause that lets the lender require full repayment if the property is transferred. However, federal law prevents lenders from enforcing the due-on-sale clause in some transfers to a relative upon the borrower’s death. The relevant federal provision is in the federal statutes governing home loans; you can review the text at the U.S. Government Publishing Office: 12 U.S.C. § 1701j-3. Even where the federal rule applies, the servicer will still need documents to allow you to continue payments or assume the loan.

7) When you can be added to the loan

Lenders may add a person to the mortgage or loan if that person passes underwriting requirements and signs loan documents. If you are not on title, the lender usually will require you to both qualify financially and have title transferred to you (via probate or other transfer) before adding you as a borrower.

8) What if the mortgage is unpaid or foreclosure begins?

If payments stopped after the death and the loan went into default, move quickly. Options may include arranging a payment plan with the servicer, applying for a loan modification, refinancing, or selling the property. Talk to the mortgage servicer and the probate court-appointed representative (executor/administrator) immediately to prevent foreclosure.

9) Practical next steps checklist

1. Obtain certified death certificate copies.
2. Get a copy of the deed and the most recent mortgage statement.
3. Contact the mortgage servicer and ask what they require and what options are available.
4. Determine whether title passes outside probate (joint ownership, trust, beneficiary deed).
5. If the property is in probate, consult the probate court or the executor to learn timeline and available estate funds for mortgage payments.
6. If you want to keep the house but cannot assume the loan, explore refinancing or applying to qualify as a borrower.
7. Consider consulting a Rhode Island attorney experienced in probate/real estate to review options and required filings.

For Rhode Island-specific probate rules and forms, start with the Rhode Island Judiciary’s Probate Court pages (link above) and search Rhode Island statutes at the General Assembly site listed above.

Helpful Hints

• Act quickly: contact the mortgage servicer right away to learn timelines and avoid missed payments that can lead to foreclosure.
• Keep careful records: save all communications, emails, and documentation from the servicer and probate court.
• Ask for a hardship or forbearance in writing if you cannot make payments while probate proceeds.
• If you are on title as a joint owner, bring a certified death certificate and a recorded deed showing survivorship to the servicer to remove the decedent’s name from account records.
• Find out if the loan is government-backed (FHA, VA): some of these loans have specific rules about assumptions and inheritances that can make transfer easier.
• Consider a short consultation with a Rhode Island probate or real estate attorney to confirm which path (assumption vs. refinance vs. sale) fits your situation.
• If the estate lacks funds to pay the mortgage, prioritize communications with the executor and lender to explore saving the home or selling it before foreclosure.