Taking Over a Deceased Parent’s Mortgage — What to Do in Wyoming

Short answer: You generally cannot simply step into a deceased parent’s mortgage without the lender’s agreement or without estate/probate action. The loan stays attached to the property. Your practical options in Wyoming are: (1) have the estate or personal representative pay the mortgage out of estate assets; (2) assume the loan if the lender allows and you qualify; (3) refinance the loan in your name; or (4) sell the property and pay off the mortgage. Which path works depends on how title to the house passes (will, trust, joint ownership, or beneficiary deed), the mortgage contract, and the lender’s policies.

Detailed answer — step‑by‑step under Wyoming law

Note: this explains common legal steps under Wyoming practice. It is educational only and not legal advice.

1. Confirm how the home passes at death

Who controls the property affects what you must do:

• If the home was held jointly with right of survivorship, the surviving joint owner typically becomes owner automatically. But the mortgage may still be enforceable against the property and the lender may require action.
• If the home is in a revocable trust, the successor trustee steps in and can manage or transfer the property according to the trust.
• If the home is solely in the decedent’s name, the property normally goes through probate unless a beneficiary deed or other nonprobate transfer applies. The personal representative (executor) administers the estate, including mortgage debt.

For basic Wyoming probate information and forms, see the Wyoming Judicial Branch probate resources: https://www.courts.state.wy.us/.

2. Notify the lender immediately

Contact the mortgage servicer as soon as you can. Tell them the borrower has died, provide a copy of the death certificate, and ask for written information about the loan balance, payment account, and the servicer’s process after borrower death. Ask whether the loan is assumable or whether the servicer will require full payoff (acceleration) upon transfer of title. Lenders vary. Some allow qualified heirs to assume loans; others require refinancing or payoff.

3. Determine who can act for the estate

If the property must go through probate, the court appoints a personal representative (executor). Only that representative generally has authority to sell or transfer estate real estate or to make arrangements with the lender on behalf of the estate. If the decedent left a trust, the successor trustee has authority under the trust document.

4. Options for keeping the home and mortgage

• Assume the mortgage: If the mortgage contract and the servicer allow assumption and you qualify for the lender’s credit requirements, you can take the loan into your name without paying it off. Confirm whether the loan has a “due‑on‑sale” or similar clause; lenders commonly enforce clauses on ownership transfers, but lenders may allow assumptions when a family member inherits and qualifies.
• Refinance the mortgage: You can refinance into your own name if you qualify for credit and income requirements. Refinancing pays off the old loan and replaces it with a new loan under your credit.
• Use estate assets or sell the property: The personal representative can use estate funds to keep paying the mortgage or sell the house to pay the mortgage. If the estate lacks funds, the lender may begin foreclosure under the loan’s terms.

5. Practical documents and information you will need

• Death certificate.
• Original mortgage statement and loan account number.
• Title/deed and any trust documents or will.
• Letters testamentary or letters of administration if probate has started (these give the personal representative authority).
• Your proof of income, credit history, and ID if you plan to assume or refinance.
• Homeowner’s insurance information and tax records.

6. Timeline and risks

Probate in Wyoming can take several months (sometimes longer if estate administration is complex). If payments stop, the lender may begin foreclosure once the mortgage is in default. Acting quickly to contact the lender and open probate (if needed) reduces the risk of foreclosure. If you are making mortgage payments, keep documentation of payments.

7. Wyoming‑specific notes

• Wyoming does not impose a state estate tax or inheritance tax. That simplifies tax concerns compared with some states, but federal estate tax rules could apply only for very large estates (rare for most families). See the Wyoming Department of Revenue for state tax information: https://revenue.wyo.gov/.
• Wyoming law governs how title passes and how personal representatives act in probate. For local probate rules and procedures, consult the Wyoming Judicial Branch: https://www.courts.state.wy.us/.
• Mortgage contracts are federally and contractually regulated; federal law and the mortgage note/servicing rules affect lender behavior.

8. When to get lawyer help

Consider talking with a Wyoming probate or real‑estate attorney if any of the following apply:

• The estate is insolvent or there are competing heirs.
• The lender threatens foreclosure or refuses to discuss assumptions or refinancing.
• Title issues, trusts, or complex estate planning documents exist.
• You need help obtaining appointment as personal representative or dealing with county deed/record matters.

You can find local court rules and basic probate filing forms via the Wyoming courts site: https://www.courts.state.wy.us/. For Wyoming statutes and to research state law provisions that apply to probate and property, see the Wyoming Legislature’s statute resources: https://wyoleg.gov/StateStatutes.

Helpful Hints

• Act quickly: notify the mortgage servicer within days of the death to learn your options and prevent missed‑payment issues.
• Get multiple copies of the certified death certificate early; lenders and many agencies require originals or certified copies.
• Locate the mortgage note and deed right away. If you cannot find the originals, the county recorder’s office can provide recorded deed copies.
• Keep paying the mortgage if you can while you sort out title and probate to avoid foreclosure. Make payments in writing and keep receipts.
• If your name is already on title as joint owner, contact the servicer anyway — the loan might still require action to avoid acceleration.
• Ask the lender for written confirmation of any promised accommodations (loan assumption, forbearance, or refinancing timeline).
• Be cautious about verbal promises. Always get terms in writing before relying on them.
• If you plan to refinance, compare quotes from several lenders to find the best rate and terms.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Laws and procedures differ by situation. For legal advice about your specific circumstances in Wyoming, contact a licensed Wyoming attorney or your county probate court.