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Short answer: Yes — in many cases a house that belongs to a decedent and still has a mortgage can be sold during probate in Maryland, but the sale must be handled through the estate process. The personal representative (executor or administrator) must follow Maryland probate procedures, address the mortgage lien (usually by paying it from sale proceeds or arranging a payoff), and obtain any required court authority or lender approvals. If the estate is insolvent or the lender objects, the options and timing change.

How this works — plain-language, step-by-step

1. Identify ownership and encumbrances. First, determine whether the home is part of the probate estate. If the decedent owned the house solely (sole name), it is usually a probate asset. If the house was held in joint tenancy, as tenants by the entirety, or in a living trust, it may pass outside probate. Check the deed and contact the county land records office for recorded liens and the mortgage holder.
2. Personal representative’s authority. The personal representative (PR) appointed by the probate court has authority to manage estate assets, including selling property when appropriate to pay debts or distribute proceeds. That authority may come from the will, Maryland probate rules, or a court order. If the PR is unsure whether they can sell, they should seek court permission.
3. Mortgage is a secured claim that travels with the property. A mortgage is a lien against the house. When the house is sold, the mortgage lender must be paid off from the proceeds (or the buyer’s lender will require a payoff and release). The PR cannot transfer title free of the mortgage unless the lender accepts a payoff or releases the lien.
4. Payoff, refinance, or short sale options.
   • Payoff from estate proceeds: If the estate has sufficient cash or other assets that can be liquidated, the PR pays the mortgage at closing and gives the buyer a clear deed.
   • Buyer assumes mortgage / refinance: A buyer may obtain financing to pay off the mortgage at closing. The lender will require a title free of liens.
   • Short sale: If the mortgage balance exceeds fair market value, the PR can try to negotiate a short sale with the lender (lender’s approval required). The lender may accept less than full balance, but this takes negotiation and documentation.
5. If estate lacks funds (insolvent estate). If debts (including the mortgage) exceed estate assets, Maryland law requires creditors to be paid in priority. The PR may need to sell the house to satisfy secured creditors (mortgage lender usually has first claim on proceeds from the property). If the lender chooses, it can pursue foreclosure outside probate if mortgage payments stop, which can complicate or speed a sale under less favorable terms.
6. Court approval may be required. Depending on the will, the PR’s powers, and whether heirs object, the PR may need the probate court’s approval to sell real property. In contested or unusual situations, file a petition with the probate court for authorization to sell and for directions on handling the mortgage payoff.
7. Title and closing requirements. Buyers and lenders expect clear title. At closing the mortgage lien will be satisfied and released. The PR must provide required notices to creditors and follow Maryland probate procedures for creditor claims prior to distribution of sale proceeds.

What heirs and buyers should watch for

• Confirm whether the house passes outside probate (joint tenancy, trust, beneficiary deed) — if so, the mortgage likely remains attached to the property and the surviving owner or trustee will need to address it.
• If selling during probate, expect additional timing and paperwork compared with a standard sale (creditor notice period, court filings, possible hearings).
• Communicate early with the mortgage lender to get a payoff statement and learn whether the lender will accept a short sale or will consider a claim against the estate for any deficiency.
• Be mindful of tax consequences, homestead exemption, and Maryland allowances that may affect estate distribution.

Where to look for Maryland law and procedural guidance

Maryland court pages explain probate basics and the role of the personal representative. See Maryland Courts — Probate for general procedures and forms: https://www.mdcourts.gov/probate. For state statutes and more detailed rules on estates and fiduciary duties, consult the Maryland General Assembly’s code resources (Estates & Trusts article): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=estates.

Common hypothetical scenarios

Scenario A — Sufficient estate funds: A decedent owned a house solely and the estate has cash. The PR obtains court letters, lists the property for sale, accepts an offer, and uses sale proceeds at closing to pay the mortgage balance and any creditor claims. After liens are released, the PR distributes remaining funds to heirs.

Scenario B — Underwater mortgage: The house is worth $200,000 and the mortgage balance is $250,000. The PR contacts the lender to request a short sale approval. If the lender agrees to a short sale, it signs off at closing; if not, lender could foreclose unless alternate arrangements are made.

Scenario C — House passes outside probate: The deed shows joint tenancy with right of survivorship. The surviving joint owner becomes sole owner automatically; the mortgage may still be in place and must be refinanced or assumed according to lender rules. Probate is not required to transfer title.

When to hire an attorney

Hire a Maryland probate attorney if any of the following apply: the estate appears insolvent; heirs dispute the sale; the mortgage lender refuses reasonable short-sale terms; the PR needs court authorization; or complex tax/asset issues exist. An attorney can file required petitions, negotiate with lenders, and protect the PR from personal liability.

Helpful Hints

• Get the mortgage payoff statement early — it shows total amount due at a given date and helps estimate net sale proceeds.
• Check county land records for recorded liens and the exact mortgage instrument before listing the property.
• Notify the mortgage lender immediately if mortgage payments will stop to minimize foreclosure risk while you explore sale options.
• Keep clear records of communications with lenders, appraisers, realtors, and heirs — the PR’s duties include accounting to the court and heirs.
• If the home is likely to sell for less than the mortgage, discuss short sale timelines with the lender; short sales can take longer than typical closings.
• Confirm whether a court sale (ordered sale through probate court) is necessary or preferred in contested situations — that process follows specific local rules and timelines.

Practical next steps

1. Locate the deed and mortgage documents and contact the lender for a payoff figure.
2. Consult the appointed personal representative (or petition to be appointed if needed) and check whether the will limits the PR’s authority to sell.
3. If appropriate, list the property with a real estate agent experienced with estate sales and inform them the property will be sold subject to probate requirements.
4. If questions or disputes arise, consult a Maryland probate attorney before signing sale documents or distributing proceeds.

Disclaimer: This information is educational and general in nature and does not constitute legal advice. It does not create an attorney-client relationship. For advice specific to your situation, contact a licensed Maryland attorney.