Detailed answer — how selling a mortgaged house works under Florida law

When a person dies owning a house with a mortgage, the mortgage does not disappear. The mortgage is a lien on the land and survives the owner’s death. The decedent’s estate — usually through the personal representative (PR) appointed by the probate court — must address the mortgage as part of administration of the estate.

Key legal pieces to know

• Probate authority: The personal representative generally has statutory powers to manage and dispose of estate assets during administration. For an overview of the Florida Probate Code that governs the PR’s powers and duties, see the Florida statutes governing estates: Florida Statutes, Chapter 733 (Administration of Estates).
• Mortgage lien survives death: The lender’s security interest remains on the property until it is paid off, released, or foreclosed.
• Homestead protection: Florida’s constitution protects homestead property from many creditor claims and from being devised in some circumstances. Homestead rules significantly affect whether the house can be sold to pay debts. See the Florida Constitution for homestead rules: Florida Constitution (Article X, Homestead provisions).

Scenarios and how they are handled

1) The house is NOT homestead (typical vacation homes, investment properties)

If the property is not homestead, the PR can often sell it to pay debts, distribute proceeds to beneficiaries, or sell it under terms acceptable to the estate and court. In many cases the sale proceeds are used to pay the mortgage in full at closing and deliver clear title to the buyer. Alternately, a buyer might purchase the home subject to the existing mortgage (buyer assumes the loan) if the lender allows assumption.

2) The house IS homestead (decedent’s permanent residence)

Florida gives strong protection to homestead property. If the decedent left a surviving spouse or minor children, they usually retain homestead rights. A personal representative cannot force a sale of homestead to satisfy most debts except where specific exceptions apply (for example, mortgage debt and certain obligations contracted to maintain or improve the homestead). In short, a mortgage recorded before death remains enforceable and the lender can foreclose if payments are not made, but creditors otherwise generally cannot force the sale of homestead property. See the Florida Constitution’s homestead protections (Article X, Section 4).

3) Selling during probate vs. after probate

A PR can list and sell estate property during probate, but the PR should confirm whether they have the authority under the will or under the statutes and whether a court order is advisable or required. Often sales are handled during administration so the mortgage is paid at closing from sale proceeds. In contested situations or where the sale terms are unusual, the PR may petition the probate court for an order authorizing sale and confirming the terms. Courts can approve sales to protect the PR from later claims by heirs or creditors.

4) Practical lender issues

Lenders expect payments on the loan. When they learn of the borrower’s death, they will want to know who is handling payments. Typical outcomes:

• Estate pays the mortgage while probate proceeds.
• Sale occurs and mortgage is paid off at closing from the sale proceeds.
• Buyer assumes the mortgage (if the loan permits assumption), or the buyer pays off the mortgage with new financing.
• If mortgage payments stop and the lender pursues foreclosure, the lender’s rights are enforceable — homestead rules may affect whether foreclosure is permitted without court proceedings or consent of a surviving spouse/children.

Typical steps to sell a mortgaged house during Florida probate

1. Confirm whether the property is homestead (ask family about residency, check property tax records).
2. Review the will and PR’s statutory powers or court order authorizing sale.
3. Contact the mortgage lender early to get the payoff amount and to explain probate status. Lenders often provide a payoff statement valid for a limited time.
4. Obtain a title search to identify all liens and encumbrances.
5. If the PR’s authority is unclear or heirs object, petition the probate court to authorize the sale and obtain an order confirming the sale terms and the PR’s actions.
6. Close the sale and use proceeds to pay the mortgage, other valid debts, taxes, and then distribute any remaining funds under the will or Florida intestacy rules.

When you should involve the court or get a lawyer

Get court approval or legal advice if:

• The property is homestead or there are disputes with a surviving spouse or heirs.
• The mortgage holder threatens foreclosure or refuses to give a payoff statement without court documents.
• Heirs disagree about selling or about how sale proceeds will be handled.
• The PR’s authority under the will or statute is unclear.

Useful Florida law references

• Florida Probate Code (administration of estates and PR powers): Fla. Stat. ch. 733.
• Florida Constitution — homestead protections (Article X): Florida Constitution.

Bottom line: You can often sell a mortgaged house during probate in Florida, but whether you should — and whether you can do so without court approval — depends mainly on homestead status, the PR’s authority, the lender’s position, and any disputes among heirs. Mortgage liens survive death and must be handled at sale (paid off or assumed), and homestead protections can limit forced sales to satisfy certain debts.

Helpful Hints

• Confirm homestead status first — it changes everything. If the decedent used the property as their primary residence and left a surviving spouse or minor child, homestead protections are likely to apply.
• Contact the mortgage lender early. Ask for a payoff statement and find out whether the loan is assumable.
• Get a title search before listing the property so you know all liens and encumbrances.
• Document all communications — with the lender, heirs, and potential buyers — and keep copies of payoff statements and closing paperwork.
• If heirs want to keep the house but cannot pay the mortgage, consider arranging a refinance or buyout rather than an immediate sale.
• When in doubt about the PR’s power to sell or about homestead issues, ask the probate court for instructions or consult a probate attorney to avoid personal liability to the estate.
• Remember that foreclosure by the lender can occur if mortgage payments stop; selling promptly (or arranging payments) can avoid a lender-initiated foreclosure.