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Detailed answer — who pays what and what to do first

When someone dies and their property goes through probate in Maine, the obligations tied to the real property (like a mortgage), plus utility accounts (electric, water, gas, internet), do not automatically disappear. A personal representative (sometimes called an executor or administrator) steps in to manage the estate. That person has a legal duty to protect estate assets and to pay valid debts and expenses when funds are available.

Key legal framework: duties of the personal representative and the probate process in Maine are governed by the Maine Uniform Probate Code (Title 18‑A). See Title 18‑A, Estates and Probate: https://legislature.maine.gov/statutes/18-A/.

Mortgage payments

– Mortgages are secured debts. The mortgage lender retains a security interest in the property until the debt is paid. If mortgage payments stop, the lender may begin collection or foreclosure procedures under Maine law.

– The personal representative should determine whether the estate has liquid funds to continue mortgage payments. If the estate has sufficient assets, the representative can (and generally should) use estate funds to keep the mortgage current to avoid foreclosure and preserve the property for beneficiaries.

– If the estate lacks funds, the personal representative has options to consider, often by asking the probate court for guidance or authority: obtain court permission to sell the property to pay creditors, negotiate with the lender (forbearance, loan modification, short sale), or allow the secured creditor to foreclose if the estate cannot preserve the asset. The representative should act quickly — lenders often allow several months of missed payments before starting formal foreclosure, but timing varies and delay increases risk.

Utilities and property maintenance (insurance, taxes, upkeep)

– Utilities generally continue only if someone pays the bills. Utility companies may require proof that the personal representative is authorized to act (probate papers) before transferring accounts into the estate’s name. If no one pays, utilities can be disconnected.

– Maintaining homeowner’s or hazard insurance and paying property taxes is important. Insurance protects the estate’s value; lapses can put the property at risk and may harm potential sale or transfer to beneficiaries.

Occupants and heirs who live in the property

– A surviving spouse, family member, or beneficiary living in the house may be personally liable for mortgage and utility bills if they take the account into their own name or signed the loan. Living in the house alone does not automatically eliminate the mortgage debt.

– If beneficiaries want to keep the property, they may need to refinance or assume the loan (if eligible) or buy out other heirs. Otherwise the personal representative may need to sell the property to satisfy the mortgage and other estate debts.

Practical sequence of steps for a personal representative

1. Obtain appointment papers from the probate court so you can legally act for the estate.
2. Gather account statements for the mortgage, insurance, property taxes, and utilities.
3. Notify the mortgage company and utility providers of the death and provide probate appointment documents. Ask about loss-mitigation, forbearance, or transfer procedures.
4. Inventory estate assets and confirm whether the estate has funds to pay ongoing expenses.
5. If funds are insufficient, consult the probate court or a probate attorney about selling the property or obtaining court authorization for other actions.

Priority of claims and creditor rights

– Secured creditors (like mortgage lenders) have priority over unsecured creditors to the extent of the security (the property). If the estate cannot pay secured debt, the lender’s remedy is typically limited to the collateral (the home), subject to Maine foreclosure procedures.

– The personal representative must follow Maine probate procedures for notice to creditors and for paying allowed claims. For more details about deadlines and creditor claims, consult the Maine probate court information: https://www.courts.maine.gov/mainecourts/courts/probate/index.html

When to get professional help

– Because mortgage, foreclosure, tax, and probate issues can be complex and time-sensitive, the personal representative should consider consulting a probate or real estate attorney and, if needed, a tax professional. An attorney can file motions to the probate court if the representative needs authority to sell property, prioritize debts, or compromise claims.

Helpful hints — quick practical checklist

• Secure probate appointment papers quickly: many companies (mortgage, utilities, insurance) will require them before discussing account changes.
• Contact the mortgage lender immediately after the appointment of the personal representative. Explain the situation and ask about payment options or temporary relief for heirs.
• Keep paying homeowner’s insurance and property taxes if at all possible — losing insurance or tax foreclosure can destroy estate value.
• Put utilities in the estate’s name or in a responsible occupant’s name to keep services on while decisions are made.
• Document every conversation and maintain copies of all bills, notices, and payments.
• If the estate cannot pay debts, talk to the probate court or a lawyer before making decisions that could create personal liability.
• If beneficiaries want to keep the house, explore refinancing, loan assumption, or buyout alternatives sooner rather than later.
• Consult Maine probate information and statutes for formal rules: Maine Revised Statutes, Title 18‑A: https://legislature.maine.gov/statutes/18-A/ and probate court resources: https://www.courts.maine.gov/mainecourts/courts/probate/index.html

Short example (hypothetical)

Suppose a decedent leaves a mortgaged house and a small bank account. The personal representative is appointed and notifies the mortgage company. The estate funds cover two months of mortgage and the insurance. The lender offers a 90‑day forbearance while the representative seeks court authority to sell the house. During that time the representative keeps utilities on in the estate’s name and arranges a broker to market the property. The sale pays off the mortgage and remaining estate debts, and leftover proceeds pass to beneficiaries per the will or Maine intestacy rules.