How to take over a deceased parent’s mortgage in Indiana: a clear, practical FAQ

Quick answer: In Indiana, taking over your father’s mortgage after his death usually requires two separate things: (1) getting legal title to the home (either by surviving joint ownership, a deed transfer through probate or other transfer method), and (2) dealing with the mortgage lender (loan assumption, refinance, or lender approval). Many steps depend on how the house was titled and on the lender’s rules. This is an educational guide — not legal advice.

Detailed answer — step-by-step under Indiana law

Below is a practical walkthrough of what typically happens and what you should do. Start by locating key documents and then move through title, lender, and probate issues.

1. Confirm how title is held (this determines whether probate is needed)

If the house was owned jointly with right of survivorship (e.g., joint tenants with right of survivorship or tenancy by the entirety between spouses), the property usually passes directly to the surviving owner without probate. You’ll need certified death certificate and a recorded affidavit or other record to show the transfer.
If the house was owned solely by your father or as tenancy in common, the house generally passes according to his will or Indiana intestacy law and will likely require probate to transfer title to heirs. Indiana court and probate resources explain the process: Indiana Courts — Probate Self-Help.
If your father used a transfer-on-death deed or beneficiary deed (if applicable in prior years), the deed may transfer the property outside probate. Confirm any such instrument in the county recorder’s office where the property is located.

2. Check the mortgage terms and lender policies

Locate the mortgage note and deed of trust or mortgage lien. Look for an “assumption” clause or a “due-on-sale” clause. A due-on-sale clause can give the lender the right to demand full repayment on transfer of title, but federal and lender policies sometimes allow survival or assumption by an heir — you must contact the lender to confirm.
Contact the mortgage servicer early (within weeks). Tell them the borrower died and ask what documentation they require and whether they permit loan assumption. Typical documents the lender requests include the death certificate, will or letters testamentary (or letters of administration), and proof of identity and income for whoever will be taking responsibility for payments.
If the lender will not allow assumption, you may be able to refinance the loan into your name (subject to credit, income, and underwriting). Refinancing replaces the old mortgage with a new one in your name.

3. Work through probate or other title-transfer process in Indiana

If the house goes through probate, the personal representative (executor or administrator) must follow Indiana probate rules to transfer the property to heirs or beneficiaries. That usually includes opening a probate case in the county where your father lived and obtaining letters testamentary or letters of administration to act for the estate.
Probate can take several months. During probate, the estate must continue property maintenance and payment of mortgage, taxes, and insurance. If the estate cannot pay the mortgage, the lender may initiate foreclosure after usual notice periods.
For small estates or certain personal property, Indiana may offer simplified procedures. Check the Indiana Courts probate information for forms and limits: Indiana Courts — Probate Self-Help.

4. Common paths to “taking over” the mortgage

Assume the existing mortgage: If the lender permits a formal loan assumption, you step into the loan obligations and the existing terms remain. The lender usually requires an application and credit check.
Refinance: You take out a new loan in your name to pay off the deceased borrower’s loan. This removes the original borrower from the mortgage and secures the house in your name (assuming you also obtain title).
Keep the loan in the estate while transferring title: The estate may continue payments until title is transferred or until heirs decide. If heirs take title but don’t take the loan, the lender may call the loan due unless an assumption or other arrangement exists.
Sell the property: If you cannot assume or refinance, selling the house to pay the mortgage and distribute remaining proceeds to heirs is often the workable solution.

5. Practical documents you will need

Certified copy of the death certificate (several certified copies are useful).
Mortgage statements, the original promissory note (if available), deed of trust or mortgage, and property deed.
The decedent’s will, if any.
Letters testamentary or letters of administration from the probate court if you are acting for the estate.
Personal proof of your income, creditworthiness, and ID if you will assume or refinance.

6. Timing, costs, and practical considerations

Start quickly: missing payments can trigger default and possible foreclosure. Keep paying the mortgage from estate funds or your own funds while you sort title and lender issues.
Costs include probate fees, court costs, recording fees to transfer a deed, possible lender fees for loan assumption or refinance, and potential taxes or estate administration expenses.
Consult a local probate attorney or a real estate attorney if the title is unclear, the estate is complex, or the lender refuses to cooperate.

Helpful links and resources

Indiana Courts — Probate Self-Help: https://www.in.gov/judiciary/self-help-resources/probate/
Indiana General Assembly (Indiana Code and searchable statutes): https://iga.in.gov/
Consumer Financial Protection Bureau — what happens to the mortgage when a borrower dies: https://www.consumerfinance.gov/ask-cfpb/what-happens-to-my-mortgage-if-the-borrower-dies-en-1791/

Helpful Hints

Get multiple certified copies of the death certificate immediately; lenders and the county will require originals or certified copies.
Keep paying the mortgage if possible while you sort title — it preserves the property and prevents foreclosure.
Ask the lender exactly what documents and forms they need in writing and get a contact name for follow-up.
Search the county recorder’s office for recorded deeds and for any transfer-on-death instruments or lien references.
Consider a mortgage refinance only after you confirm you can obtain clear title; a refinance typically requires that title be in the borrower’s name or that the estate can sign.
If the mortgage is an FHA, VA, or USDA loan, ask the servicer about special rules or protections for surviving family members — government-backed loans often have specific procedures.
Keep good records of all communications, payments, and paperwork — you may need them for probate or lender disputes.

Disclaimer: This article explains general principles of Indiana law and common lender practices. It is educational only and does not create an attorney-client relationship. It is not legal advice. For guidance tailored to your situation, consult a licensed Indiana attorney experienced in probate and real estate.