Detailed Answer

If your parent owned a house and left behind a mortgage, “taking over” that mortgage usually involves two separate legal issues: (1) who becomes the owner of the house (title), and (2) whether the mortgage lender will allow you to keep the loan in place or requires repayment (loan obligation). Both issues matter — you can own the house but still be responsible for a mortgage only if the lender agrees or you refinance the loan yourself.

1. Identify how the house transfers at death (title)

The house’s ownership does not automatically pass to the person who paid the mortgage. How the title passes depends on how your father held title before he died:

• If title was held jointly with right of survivorship (e.g., joint tenancy), the surviving co-owner typically becomes the sole owner immediately and can then deal with the mortgage. You will need a death certificate and recorded evidence of survivorship to update the title and show the lender.
• If the house was owned in your father’s name alone, the property usually passes according to his will or, if he left no will, under Texas intestacy rules. That typically requires probate or some other transfer procedure before you can legally transfer the title into your name.
• If the property was in a living trust, the successor trustee can usually transfer title per trust terms without probate.

For general information on probate and estate administration in Texas, see the Texas Judicial Branch overview on probate: https://www.txcourts.gov/programs-services/probate/ and search the Texas Estates Code at the Texas statutes website: https://statutes.capitol.texas.gov/.

2. What the lender can and cannot do about the mortgage

Mortgages are contracts between a borrower and a lender. Most mortgages include a “due-on-sale” clause that allows the lender to demand full repayment if the borrower transfers the property. However, federal law limits enforcement of some due-on-sale clauses for transfers that occur because of a borrower’s death. See the federal Garn–St. Germain provisions (12 U.S.C. §1701j-3) for the federal rule about certain transfers at death: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1701j-3&num=0&edition=prelim.

Even though federal law may prevent a lender from automatically enforcing a due-on-sale clause when ownership passes because of death, lenders still control whether they will formally allow a loan to be “assumed” by a new borrower or require a refinance. Common lender responses include:

• Allowing a formal loan assumption (rare; lender must approve the new borrower’s credit and income).
• Permitting a temporary arrangement where the heir keeps making payments but the loan remains in the original borrower’s name (risky: still tied to deceased borrower’s estate).
• Requiring repayment or refinance to remove the deceased borrower from personal liability.
• Beginning foreclosure if mortgage payments stop, regardless of who holds title.

3. Practical step-by-step process

1. Obtain certified copies of the death certificate. Lenders and probate courts will require these.
2. Locate the mortgage and title documents. Find the promissory note, deed of trust, deed, and any will or trust documents.
3. Contact the mortgage lender immediately. Tell them of the death, provide a death certificate, and ask about the lender’s requirements to assume the loan or to modify the loan. Ask whether the loan is assumable and what documents they need (e.g., letters testamentary, letter of administration, affidavit of heirship, proof of income).
4. Determine how title will pass. If there is a will, the executor must get probate court approval and then transfer title. If there’s no will, the estate likely needs administration under Texas Estates Code unless a non-probate method applies (trust, joint tenancy, etc.). Information on Texas probate procedures is at: https://www.txcourts.gov/programs-services/probate/ and the Texas statutes site: https://statutes.capitol.texas.gov/.
5. If the lender approves an assumption: Complete the lender’s application and provide required financial documents. Get the lender’s approval in writing before relying on the assumption.
6. If the lender will not allow an assumption: Consider refinancing the mortgage in your name (requires qualifying for a new loan), keeping the estate current on payments while you pursue options, selling the property to pay off the mortgage, or negotiating a loan modification.
7. Protect the property and insurance: Keep mortgage payments current, maintain homeowner’s insurance, and verify that property taxes are paid to avoid tax liens or foreclosure.
8. Record transfers correctly: Once title transfers (by probate, deed, or trustee action), record the deed at the county clerk’s office to show legal ownership.

4. Special Texas considerations

Texas has strong homestead protections that can affect how the home is disposed of and who must consent to the transfer. If a surviving spouse or minor children occupy the homestead, special rules apply that can affect sale or mortgage matters. For constitutional and statutory guidance, consult the Texas statutes portal and a local attorney for how homestead law might apply to your situation: https://statutes.capitol.texas.gov/.

5. Common complications and solutions

• If the estate cannot pay the mortgage, the lender can pursue foreclosure. Keep the lender informed and consider a loan modification or sale.
• Affidavits of heirship are sometimes used in Texas to establish ownership without probate, but they carry risk and may not be accepted by lenders or title insurers. Probate or a trustee transfer is safer.
• If you cannot qualify to refinance, explore whether a co-borrower, loan assumption (if allowed), or selling the house is realistic.

6. When to get professional help

Get a Texas probate or real estate attorney if any of the following apply: the estate must go through probate, the lender refuses to accept payments or contact is difficult, title is unclear, homestead or spousal rights are involved, or you face possible foreclosure. A title company can help with the mechanics of transferring title once you have the legal authority to do so.

Helpful Hints

• Do not stop mortgage payments before you have spoken with the lender — missed payments can trigger foreclosure.
• Get multiple certified copies of the death certificate; lenders and county offices usually require originals or certified copies.
• Ask the lender for written confirmation of any agreement (assumption, modification, or repayment plan).
• If a will exists, find and give it to the named executor and to the probate court — the court’s paperwork (letters testamentary) often is required to manage the estate’s assets.
• Keep records: log every call with the lender, the probate court, and any professionals you consult. Save emails and mailed confirmations.
• Consider short-term financing or bridge loans only with full understanding of costs if you must pay the mortgage while sorting title or refinancing.
• Be cautious with affidavit-of-heirship filings — they are a practical shortcut but not a substitute for probate in many cases and might not satisfy a lender or title insurer.

Resources

• Texas statutes and codes (search for “Estates Code” and “Property Code”): https://statutes.capitol.texas.gov/
• Texas Judicial Branch — probate information: https://www.txcourts.gov/programs-services/probate/
• Garn–St. Germain federal provision about certain transfers at death (due-on-sale exceptions): https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1701j-3&num=0&edition=prelim