Detailed answer — how mortgage and utilities are handled under New Hampshire practice

Who is responsible for mortgage payments after a death?

Responsibility depends on who is on the mortgage and how title to the house is held:

• If the decedent was the sole borrower: the mortgage remains a debt of the estate. The lender can require payment; if payments lapse, it may start foreclosure proceedings against the property even while the estate is in probate.
• If there is a co-borrower (for example, a spouse or adult child who signed the loan): the co-borrower stays personally liable for the mortgage and the lender can pursue them if payments stop.
• If the property passed automatically (for example, joint tenancy with right of survivorship or some beneficiary transfer outside probate): the surviving owner takes title but the loan itself may still need attention — many lenders demand payment or refinance if the borrower dies.

What role does the personal representative (executor/administrator) play?

Once appointed by the probate court, the personal representative (PR) manages estate assets and pays necessary expenses, including reasonable upkeep of real property, mortgage payments, property taxes, insurance, and utilities. The PR should get the court’s letters testamentary or letters of administration and use those to show authority to banks, lenders, and utility companies.

How are mortgage payments paid from the estate?

If the estate has cash or liquid assets, the PR may pay ongoing mortgage payments from estate funds while the PR evaluates whether the estate will keep or sell the property. If the estate lacks funds, the PR must prioritize expenses under probate law and may need to seek court approval before using certain assets. Creditors (including mortgage lenders) generally must present claims in probate to be paid from estate assets; however, lenders can still foreclose on real property if loan payments stop. For information about administering estates and creditor claims in New Hampshire, see the New Hampshire Probate Court resources: https://www.courts.state.nh.us/probate/ and the New Hampshire RSA library: https://www.gencourt.state.nh.us/rsa/html/.

What happens to utilities while the estate is in probate?

Utilities function like other ongoing household expenses. Utility companies typically expect timely payment from the account holder. If the decedent paid utilities and the account is not transferred or paid, companies may shut off service for nonpayment. The PR should contact each utility immediately to:

• Notify the company of the account holder’s death;
• Provide the PR’s letters from the probate court so the company can bill the estate or transfer service;
• Ask about options to leave service on temporarily while the property is settled (avoids freeze pipes, vandalism, etc.).

What are the practical risks if payments stop?

• Mortgage default and possible foreclosure. Lenders often proceed on their contractual rights even during probate.
• Utilities may be shut off, causing property damage (frozen pipes) or making the property less marketable.
• Loss of homeowner’s insurance coverage if premiums lapse, which increases risk to the estate.

Options the personal representative or heirs can pursue

• Contact the lender quickly. Some lenders grant short forbearance, accept payments from the estate, or allow a loan modification or assumption if a qualified person lives in or buys the property.
• Open an estate bank account once you have court authority, and pay mortgage, taxes, insurance, and utilities from that account.
• Sell the property to pay the mortgage and other claims — the PR can seek court approval to sell if required by New Hampshire probate procedures.
• Consider a deed in lieu of foreclosure or short sale if the estate cannot maintain the loan and the lender will accept such alternatives.
• If a surviving spouse or co-borrower lives in the house, explore whether they have protections or relief available outside probate.

Timeline and urgency

Probate in New Hampshire can take months. Lenders and utilities do not automatically pause because of probate. Act immediately after the death: find the will, petition the probate court for appointment, obtain letters of authority, and contact mortgage servicers and utilities to explain the situation and ask for written guidance on how they will handle payments during probate.

Helpful hints — practical checklist for executors, heirs, and family

1. Locate the will, mortgage documents, and recent mortgage and utility statements.
2. Call the mortgage servicer to report the death, ask about the loan status, and request options in writing.
3. Contact utility companies to prevent shutdowns and obtain billing instructions for the estate or new account holder.
4. Apply promptly to the Probate Court for letters testamentary or letters of administration. New Hampshire probate information: https://www.courts.state.nh.us/probate/.
5. Open an estate bank account once you have court authority. Use it to pay mortgage, insurance, taxes, and utilities and keep clear records of all payments.
6. Maintain homeowner’s insurance and secure the property to preserve its value.
7. If the estate lacks funds, discuss short-term solutions with the lender (forbearance, deferment) and consider selling the property as soon as practical if keeping it is not feasible.
8. Document all calls and written communications with lenders and utility companies.
9. Consider consulting a probate attorney to ensure compliance with New Hampshire probate rules and to protect the PR from personal liability.