What happens to mortgage payments and utilities while an estate is in probate in South Carolina?

Short answer: Probate does not remove the mortgage lien or automatically cancel utility bills. The executor (personal representative) or administrator must protect estate assets, which usually means keeping mortgage payments, property insurance, taxes, and essential utilities current from estate funds or arranging another lawful solution. If payments stop, the mortgage lender can pursue foreclosure against the property collateral, and utilities can be shut off.

Detailed answer — responsibilities during probate under South Carolina law

This section explains what typically happens to mortgage payments and utilities while an estate is in probate in South Carolina. This is general information only — consult a South Carolina probate attorney for advice tailored to a particular situation.

Who is responsible for mortgage payments after someone dies?

– The mortgage is a lien on the property, not a personal obligation that automatically disappears when the borrower dies. The lender retains the right to enforce the mortgage against the property collateral.
– The estate (through the executor/personal representative) is responsible for estate debts to the extent estate assets are available. The personal representative has a duty to preserve estate assets, which commonly includes continuing mortgage payments to avoid foreclosure while the estate is administered. See South Carolina probate law generally: South Carolina Code, Title 62 (Wills, Decedents’ Estates and Fiduciaries): https://www.scstatehouse.gov/code/title62.php.
– Heirs who receive property by inheritance take title subject to existing liens. That means if the estate distributes the home to heirs without paying off the mortgage, the lender’s lien remains and the lender can foreclose if payments are not made.

Practical options an estate or personal representative has

• Continue making mortgage payments from estate funds. If the estate has cash, the personal representative should pay ongoing secured debts (mortgage, property taxes, insurance) to preserve value.
• Contact the lender. Lenders often work with personal representatives to accept payments, provide forbearance, or approve short-term arrangements. Early contact helps avoid foreclosure.
• Sell the property. If the estate lacks funds, the personal representative may seek court authority to sell the property and use sale proceeds to pay the mortgage and other claims. The sale process is governed by probate rules and any mortgage terms.
• Heir assumes the mortgage. An heir may be able to refinance or assume the mortgage (if lender allows). If the heir takes title without resolving the mortgage, the lien remains enforceable against the property.
• Allow foreclosure (last resort). If no funds exist and no buyer or assumption is possible, foreclosure may proceed. Foreclosure eliminates equity but does not typically eliminate the lender’s right to enforce the lien during probate delays.

What about utility bills, insurance, and property taxes?

• Utilities: The estate or the person occupying the house must pay utilities (electric, water, gas, sewer). Utility companies may require the personal representative to provide proof of authority (letters testamentary/letters of administration) or a deposit to continue service. If service is disconnected, the property can become harder to maintain and lose value.
• Homeowners insurance: Maintaining insurance on property is essential. The personal representative should keep the policy current from estate funds to protect the asset from loss.
• Property taxes and municipal charges: These are priority obligations against the property. Failure to pay property taxes can lead to tax liens or sales. The personal representative should make sure taxes are paid from estate assets or resolved at sale.

Creditors, timeline, and the personal representative’s duties

– The personal representative has fiduciary duties to identify assets, notify creditors as required under South Carolina probate law, pay valid debts in the correct priority, and preserve estate property. For statutory guidance about administering estates and the fiduciary duties of personal representatives, see South Carolina Code, Title 62: https://www.scstatehouse.gov/code/title62.php.
– The representative should inventory the estate, locate bank accounts or life insurance proceeds that could cover ongoing obligations, and publish or send required notices to creditors so claims are resolved properly.

If I’m an heir living in the house, what should I do?

1. Notify the personal representative and confirm who will pay mortgage, taxes, insurance, and utilities during probate.
2. If you occupy the house, consider paying utilities and maintaining insurance to prevent damage or loss, but get written agreement from the personal representative about reimbursement or credit against inheritance.
3. Discuss refinancing or assumption with the lender if you want to keep the home after probate; lenders often require proof of title transfer and credit underwriting.

Practical timeline considerations

Probate can take months to longer depending on complexity and creditor claims. Because mortgage lenders and utility companies operate on short timelines, early action is essential. The personal representative should act promptly to avoid foreclosure, utility shut-offs, or insurance lapses.

Helpful hints

• Obtain the letters testamentary or letters of administration quickly — many lenders and utilities require them before dealing with the personal representative.
• Contact the mortgage lender immediately after the decedent’s death to explain the situation and request guidance or temporary forbearance options.
• Keep property insurance and utilities active while the estate is being administered to protect property value.
• Prepare a complete inventory of estate assets and liabilities to determine whether estate funds can cover ongoing obligations.
• Consider a short sale or sale through probate if estate cannot support ongoing payments — selling may limit losses and avoid foreclosure.
• Get written agreements: if heirs agree to pay or the personal representative arranges payments, document the arrangement in writing to avoid disputes later.
• Talk to a South Carolina probate attorney early to understand deadlines, required notices to creditors, and the personal representative’s authority to use estate funds or sell property. Local attorneys can also contact lenders on your behalf.