Detailed answer

When a person dies owning a house in Missouri and that house still has an outstanding mortgage, the house does not automatically pass free of the mortgage. The mortgage is a secured debt attached to the property, and the obligation remains until it is paid, the lender agrees to release or modify the mortgage, or the property is foreclosed. Who controls the property and whether it can be sold during probate depends on whether the estate is being administered, what the will (if any) authorizes, and whether a personal representative (executor or administrator) has authority from the court.

Who controls the house during probate?

Once probate begins, the personal representative named in the will or appointed by the probate court controls the decedent’s probate assets, including real estate. The personal representative must protect estate assets, pay valid debts (including mortgages), and follow the court’s orders and the will’s instructions. In Missouri, the probate code governs administration of estates; see the Missouri Revised Statutes, Chapter 474 for the estate administration framework: RSMo Chapter 474.

Can the house be sold while in probate?

Yes — the personal representative can sell the house during probate, but usually only if one of these is true:

• The will expressly gives the personal representative authority to sell real estate without court confirmation; or
• The personal representative obtains court approval (an order authorizing sale), which is commonly required when the will is silent or when sale is necessary to pay debts, taxes, or to preserve the estate’s value.

Many sales in probate are made to pay debts and expenses (including the mortgage) so the estate can be administered and any remaining proceeds distributed to beneficiaries.

How does an outstanding mortgage affect a sale?

Key consequences of an outstanding mortgage:

• The mortgage stays attached to the property until paid or released. At closing, sale proceeds normally pay off the mortgage lender first. The title company or closing attorney will request a payoff statement and use sale proceeds to satisfy the lien.
• If the sale price is insufficient to pay off the mortgage, the estate (not the beneficiaries personally) remains liable for the deficiency unless a beneficiary personally assumes the loan or agrees to other terms with the lender.
• Buyers and their lenders typically require a clear title, so payoff or lien release is a standard closing step. That may require court orders or additional documentation if the personal representative’s authority is limited.

Common paths to sell the house during probate (hypothetical examples)

Example 1 — Will authorizes sale: A will names Alice as personal representative and expressly allows her to sell real estate without further court approval. Alice lists the home, accepts an offer, obtains a mortgage payoff, closes, and uses proceeds to pay the lender and debts, then distributes the remainder to beneficiaries.

Example 2 — No explicit sale power: Bob is appointed personal representative but the will does not expressly authorize sale. The mortgage payment is due and creditors exist. Bob petitions the probate court for authority to sell the property to satisfy debts. The court issues an order authorizing sale; Bob closes and pays off the mortgage at closing.

Example 3 — Heirs want to keep the property: Heirs may agree to take the property subject to the mortgage or refinance the loan in an heir’s name. The lender must approve assumption or refinance. If heirs accept a deed and the mortgage remains, the lender can still pursue foreclosure if payments lapse.

Practical steps to take

1. Confirm whether the decedent left a will and who is the personal representative. If the estate is not opened, the house generally remains in the decedent’s name and cannot be sold by heirs individually.
2. Identify the mortgage lender and request a payoff statement (amount required to satisfy the loan as of a target closing date).
3. Check whether the will authorizes sale. If not, file a petition in probate court asking for authority to sell and for any required court approvals (often presented as a motion or petition for sale).
4. If court approval is required, follow local court rules for notice to beneficiaries and creditors and obtain the court order before listing or closing if the title company requires it.
5. At closing, use sale proceeds to pay mortgage and other valid debts in the order required by law. Record lien releases and deliver clear title to the buyer.

Alternatives to selling during probate

• Heir refinance or mortgage assumption (if lender agrees).
• Heirs accept property by deed and agree among themselves to pay mortgage (they become personally liable unless lender allows assumption).
• Small estate or summary procedures (if the estate qualifies) to avoid full administration — eligibility rules vary and may speed transfer of certain property.

Timing and likely delays

Probate sales can take months. Expect time for appointment of a personal representative, creditor notice periods, court filings, and obtaining a court order if required. Lenders also need time to prepare payoffs and approve buyer financing.

When to get an attorney

If the estate has a mortgage, multiple creditors, contested beneficiaries, or if you are unsure whether the will authorizes sale, consult a Missouri probate attorney. An attorney can prepare required petitions, obtain court orders, coordinate with the lender and title company, and help protect the personal representative from personal liability.

Statutory reference: Missouri’s probate statutes govern estate administration and the duties and powers of personal representatives; see the Missouri Revised Statutes, Chapter 474: RSMo Chapter 474 (Probate Administration). For small estate procedures or non-administration transfers, see the provisions in the Missouri statutes governing disposition without administration (search RSMo for “small estate” or “administration”).

Disclaimer: This article is educational only and not legal advice. It summarizes general principles of Missouri law and uses hypothetical examples. For advice about a specific situation, contact a licensed Missouri probate attorney.

Helpful hints

• Do not try to sell or transfer title to the house before a personal representative is appointed or a proper court order is obtained — buyers and title companies usually require proof of authority.
• Contact the mortgage lender early. Request a payoff statement and discuss whether the lender will allow assumption, refinance, or a short payoff.
• Keep documentation organized: death certificate, will, letters testamentary/letters of administration, mortgage account number, payoff statements, tax information, and homeowner’s insurance details.
• If the sale is to pay debts, notify known creditors and follow court notice requirements so the sale will withstand later challenge.
• Understand that beneficiaries are generally not personally on the hook for mortgage debt just because they inherit; the mortgage remains attached to the property unless they personally assume it or the estate pays it.
• Ask about a title company that handles probate sales — they can guide required documents and typical timelines for payoffs and releases.
• When in doubt, hire a Missouri probate attorney to file the right petitions and secure the court permissions needed to sell cleanly and avoid later disputes.