Can I keep my late parent’s home and its mortgage in Iowa?

Short answer: Possibly — but ownership and mortgage responsibility are separate. You must determine how title to the home transfers, keep paying the loan, and work with the lender. You may need probate or to record proof of survivorship, and you may need the lender’s approval to assume or refinance the loan.

Detailed answer — what you need to know and do

This section explains the common legal and practical steps to take when a parent dies and you want to keep the house and its mortgage in Iowa. It is written to be understandable for readers with no legal background. This is general information, not legal advice.

1) Find out how title to the house passes

The first question is: who becomes the owner of the property after the death? Ownership can transfer in several ways:

• Joint tenancy with right of survivorship: If the parent owned the house jointly with you (or someone else) as joint tenants, ownership usually passes automatically to the surviving joint tenant. To clear title you typically record a certified death certificate and an affidavit or other survivorship paperwork at the county recorder.
• Property held in a trust: If the home was in a living trust, the trustee follows the trust’s terms to transfer the house to beneficiaries without probate.
• Transfer-on-death deed or beneficiary deed: Some states allow deeds that name a beneficiary who takes title at death. If such a deed exists, the beneficiary records proof of death and the deed becomes effective.
• Owned solely by the decedent with a will or intestate: If the property was only in the deceased’s name, title often transfers through probate. If there is a valid will, the executor distributes assets per the will. If there is no will, Iowa law on intestate succession applies.

For Iowa statutes on how estates and property pass through probate and intestacy, see Iowa Code, Chapter 633: Iowa Code, Chapter 633 (Decedents’ Estates).

2) Mortgage remains separate from ownership — contact the lender right away

Owning the house does not automatically remove the mortgage. The mortgage is a contract between the borrower and the lender. Common situations:

• If your parent was the only borrower on the mortgage, the lender can expect payments to continue. If payments stop, the lender can start foreclosure against the property whether or not you are on the title.
• If you are on the mortgage as a co-borrower, you remain contractually liable and the lender cannot usually demand payment simply because of death.
• If you inherit title but are not on the loan, you can often remain in the house, but the lender’s rights remain. The lender can usually require payoff on certain transfers unless a legal exception applies.

Federal law provides an important protection in many death-to-relative transfers. Under the Garn–St. Germain Act, a lender generally cannot enforce a due-on-sale clause solely because the owner died and the property transfers to a relative who occupies the dwelling as their principal residence. See 12 U.S.C. §1701j-3: 12 U.S.C. §1701j-3. That federal protection often lets a surviving child or spouse keep the loan in place, but it does not automatically change the legal owner or remove the lender’s right to be notified or to require documentation.

3) Practical steps to take now

1. Get multiple certified copies of the death certificate. Lenders, the county recorder, and probate courts require certified copies.
2. Locate the will, trust, and the deed. These documents show how title is supposed to transfer.
3. Check the public record for the deed and mortgage. Visit the county recorder’s office (or website) to see who holds title now and whether the mortgage is a recorded lien.
4. Contact the mortgage servicer immediately. Tell them of the death, ask for a payoff statement, and ask whether they allow assumption, a modification, or if the Garn–St. Germain exception applies. Get any offers in writing.
5. Keep making mortgage payments. If you want to keep the home, continuing timely payments is critical to avoid default and foreclosure while you resolve ownership and financing.
6. Determine whether probate is required. If the property does not transfer automatically, you may need to open probate to transfer title. If the estate is small, Iowa law may provide simplified procedures. See the Iowa Courts website or consult a probate attorney for local forms and timelines: Iowa Judicial Branch.
7. If you will be taking over payments but are not on the loan: ask the lender about assumption paperwork or refinancing into your name. Refinancing is the most common way to place the debt in your name.
8. If you cannot assume or refinance: possible options include selling the property (to pay off the mortgage), negotiating a deed-in-lieu of foreclosure, or working with the lender on loss mitigation.

4) If there is a foreclosure risk

If the mortgage is behind on payments, start working with the lender immediately. Iowa has specific foreclosure procedures; the lender must follow statutory notice and filing rules before a sale. If you receive a foreclosure notice, read it carefully and consider getting help right away. For roots on probate and related procedure see Iowa Code, Chapter 633: Iowa Code, Chapter 633.

5) Documents you will likely need to record or provide

• Certified death certificate
• Recorded deed or probate court order transferring title (e.g., deed in probate, order approving estate distribution, or letters testamentary/letters of administration)
• Affidavit of survivorship or transfer-on-death paperwork (if applicable)
• Mortgage payoff or assumption documentation from the lender
• Identification and proof of your occupancy if you plan to live in the home

6) When to get legal help

Consider consulting a licensed Iowa attorney if any of the following apply:

• The title situation is unclear (no will, conflicting deeds, unknown heirs)
• The lender refuses to allow assumption and you cannot refinance
• The estate requires formal probate and the property is a major asset
• Foreclosure is imminent or notices have been filed

A lawyer can help you open probate (if needed), prepare and record transfer documents, negotiate with the lender, and evaluate alternatives such as refinancing or sale.

Helpful Hints

• Get certified death certificates right away — you’ll need several for the lender, bank accounts, and the recorder.
• Keep making mortgage payments while you sort ownership and financing — missing payments greatly increases foreclosure risk.
• Record any transfer documents with the county recorder promptly so title is clear for future refinancing or sale.
• Ask the servicer in writing whether the loan can be assumed, modified, or refinanced and request a written payoff figure.
• Check whether the Garn–St. Germain federal protection applies if you inherit the property and plan to live there: 12 U.S.C. §1701j-3.
• Keep records of all communications with the lender, including names, dates, and written offers.
• Look for local free or low-cost legal aid if you cannot afford a private attorney — the Iowa Courts website has resources to help people represent themselves or find counsel: Iowa Judicial Branch.

Important disclaimer: This article explains general principles under Iowa law and is not legal advice. Laws change and your situation may turn on specific facts. For advice about your case, consult a licensed Iowa attorney.