FAQ: Who pays the mortgage and utilities while an estate is in probate in Maryland?

Short answer: The estate’s personal representative (executor or administrator) is responsible for protecting estate property during probate. That usually means arranging mortgage and utility payments from estate funds if available, keeping insurance and utilities active to protect value, and communicating with the lender and utility companies. If the estate lacks money, the personal representative may seek court authority to sell the property or otherwise resolve secured debts. Heirs are not personally responsible for the decedent’s mortgage unless they signed the mortgage or note.

Detailed answer — how this works in Maryland

1. Who acts for the estate?

After someone dies, the probate court appoints a personal representative (often called an executor if named in the will, or an administrator if not). That person has a legal duty to collect and manage estate assets, pay valid debts and expenses, and preserve estate property while probate proceeds. For general probate information in Maryland, see the Maryland Courts probate pages: https://www.mdcourts.gov/probate.

2. Mortgage payments during probate

• Secured debt stays attached to the property. A mortgage is a lien on the real estate. Even though the decedent has died and the estate is in probate, the mortgage lender still has the right to enforce the loan against the property if payments stop.
• Primary duty to pay: If the estate has cash or other liquid assets, the personal representative should use estate funds to make mortgage payments to avoid foreclosure and preserve the estate’s value. If the personal representative fails to protect the asset, creditors (including the mortgage lender) can pursue foreclosure.
• If the estate lacks funds: The personal representative must prioritize how to handle insufficient funds. Options include asking the court for authority to sell the property to pay debts, negotiating with the lender (forbearance or short sale), or allowing foreclosure if necessary. The lender generally can continue foreclosure even while probate is pending if the loan is in default, because the mortgage is secured by the land.
• If heirs want the property: An heir who takes title to the house (or has it transferred to them) receives it subject to the mortgage. The heir is not personally liable for the loan unless they signed the mortgage or note, but the lender still has the right to foreclose on the house to satisfy the debt.

3. Utility accounts and other property maintenance

• The personal representative should keep utilities, insurance, and essential maintenance active while the property is part of the estate. Maintaining utilities and insurance protects the property and prevents damage that reduces value.
• Utility companies usually allow the personal representative to keep service on by placing accounts temporarily in the estate’s or representative’s name or by providing proof of authority. The Maryland Public Service Commission provides guidance for consumer issues with utilities: https://www.psc.state.md.us/consumer-resources/.
• If the estate cannot pay, utilities may be disconnected under the company’s rules; that can harm the property value and complicate sale or transfer.

4. Priority of payments and creditor claims

The personal representative must follow Maryland probate rules when paying debts and administration expenses. Secured debts (mortgages) are enforced against the secured property. Unsecured creditors must present valid claims to the estate; the representative evaluates claims and pays from estate assets where appropriate. Because probate procedure and creditor timelines are governed by Maryland law and court rules, personal representatives should consult probate resources or an attorney. The Maryland Courts probate resource is a good starting point: https://www.mdcourts.gov/probate.

5. Communication with lenders and utilities

• Notify the mortgage lender quickly that the borrower has died. Lenders commonly request a copy of the death certificate and contact information for the personal representative.
• Ask the lender about temporary options if the estate needs time to liquidate assets (short sale, deed in lieu, or loss mitigation). The Maryland Attorney General and other state consumer resources maintain foreclosure prevention guidance: https://www.marylandattorneygeneral.gov/Pages/Foreclosure/Foreclosure.aspx.
• Contact utility companies and insurance providers to transfer or maintain accounts and to learn documentation required to keep service active or to change billing to the estate.

6. When sale or refinance is needed

If mortgage payments cannot be sustained from estate funds, the representative can ask the court to authorize selling the real property to pay debts and expenses. Sale or refinancing may require court approval depending on what the will says and Maryland probate practice.

7. Personal liability of heirs and family members

Heirs generally are not personally responsible for the decedent’s mortgage debt unless they are co-borrowers or co-signers. However, if heirs take title to the property, they take it subject to any liens (including the mortgage). If they want to keep the house, they must bring payments current, refinance, or assume the loan where permitted.

Hypothetical example (illustrates typical steps)

Imagine Alice dies owning a house with a mortgage and utility accounts. The court appoints her son Ben as personal representative. Ben does the following:

1. Files for probate and obtains letters of administration showing his authority.
2. Notifies the mortgage lender and sends a copy of the death certificate and letters.
3. Checks estate bank accounts. If there is cash, Ben pays the mortgage and keeps homeowner’s insurance and utilities active to protect the property.
4. If there is no money, Ben contacts the lender to discuss options and asks the court for permission to sell the house to pay the mortgage and other debts if necessary.
5. If an heir wants the house, the heir either refinances the mortgage or the estate sells the property and distributes net proceeds as the probate process allows.

Helpful hints

• Obtain and keep multiple certified copies of the death certificate; lenders and utilities commonly require them.
• Act quickly to notify the mortgage lender and utility companies to learn their documentation requirements and to avoid service interruption or acceleration of foreclosure.
• Do not assume an estate cannot be touched; the personal representative must follow the probate process before spending estate funds (or getting court approval where required).
• If you are an heir and want the house, talk to the personal representative early about options: refinance, assumption (if lender allows), sale, or purchase from the estate.
• Keep good records of all payments and communications—mortgage payments, utility bills, insurance, and repair costs—because they are part of the estate accounting and may affect distributions to heirs.
• If a mortgage or utility company threatens repossession, foreclosure, or disconnection, contact the company and consider speaking with an attorney experienced in Maryland probate and consumer or foreclosure defense.

Where to get more information in Maryland

• Maryland Courts — Probate and administration overview: https://www.mdcourts.gov/probate
• Maryland Attorney General — Foreclosure prevention and homeowner resources: https://www.marylandattorneygeneral.gov/Pages/Foreclosure/Foreclosure.aspx
• Maryland Public Service Commission — Utility consumer resources: https://www.psc.state.md.us/consumer-resources/

Disclaimer: This article explains general principles about mortgages, utilities, and estate administration in Maryland and is for educational purposes only. It is not legal advice. For advice about a specific situation, consult a licensed Maryland probate or real estate attorney.