Detailed Answer

1) First — identify how title to the house will pass

Before you worry about the mortgage, find out how ownership of the house will transfer. Common possibilities in Nevada include:

• Joint tenancy with right of survivorship or community property with right of survivorship: the house passes automatically to the surviving owner and you may only need to record the death certificate to update title.
• Transfer-on-death (TOD) or beneficiary deed: if the decedent recorded a TOD deed, the named beneficiary gets title outside of probate once the proper steps and recording are completed.
• Will or intestacy (no will): the property usually passes by probate or by a small-estate procedure if eligible.

Check the deed in the county recorder’s office to see current title language or look for any recorded TOD/beneficiary deed.

See Nevada statutes and property code for details: Nevada Revised Statutes (NRS) on property and conveyances: https://www.leg.state.nv.us/NRS/NRS-111.html. For general Nevada law text, see https://www.leg.state.nv.us/NRS/.

2) Next — find the mortgage documents and check for an assumption clause

Locate the promissory note and mortgage (deed of trust). Look for language about whether the loan is assumable, and for an acceleration or “due-on-sale” clause that lets the lender declare the loan due if the property transfers. Most modern loans include a due-on-sale clause, meaning the lender can demand full payment if ownership changes.

Federal law limits when lenders can enforce due-on-sale clauses. The Garn–St. Germain Act and related federal rules can affect enforcement; see 12 U.S.C. §1701j-3 for the federal framework on loan restrictions: https://www.govinfo.gov/.

3) Contact the lender promptly

Call the mortgage servicer and tell them the borrower died. Ask:

• Whether the loan is assumable and what documentation they require for an assumption.
• Whether they will allow the heir to continue payments under the existing loan (some servicers will let an heir make payments temporarily even if the loan contains a due-on-sale clause).
• What documentation they need: death certificate, letters testamentary or letters of administration, recorded deed or affidavit, ID, and possibly financial information for underwriting.

4) Common ways to “take over” the mortgage in Nevada

Options depend on lender consent and how title passes. Typical paths include:

• Assumption of the mortgage — the lender formally transfers liability to you. Some older loans are assumable; newer loans often require lender approval and underwriting. If approved, you take over payments and the loan remains in place.
• Refinance — you remove the decedent’s name by getting a new mortgage in your own name. This is common if the lender won’t permit an assumption or you want different terms.
• Keep making payments as an owner — if you inherit the house (through joint tenancy, TOD deed, or probate) you can keep paying the mortgage. Even if the lender could enforce a due-on-sale clause, many servicers will accept payments from heirs rather than accelerate immediately; however, the borrower remains legally responsible until the lender formally approves an assumption or refinance.
• Sell the property — use sale proceeds to pay off the mortgage. This is often the simplest solution when heirs don’t want to keep the home or don’t qualify to take over the loan.
• Deed in lieu of foreclosure or short sale — if the estate can’t pay and foreclosure looms, negotiate with the lender for these loss-mitigation options.

5) How probate or transfer procedures affect lender actions

If the property passes by probate, the personal representative (executor/administrator) has duties under Nevada probate law to manage estate assets and pay debts. The representative should notify creditors, including the mortgage servicer, and follow probate rules for selling or transferring property. For Nevada court and probate self-help resources, see the Nevada Courts website: https://nvcourts.gov/.

6) Documents you will likely need

• Certified death certificate.
• Recorded deed or other proof of title (or recorded TOD deed if applicable).
• Letters testamentary or letters of administration if the property is in probate (issued by the probate court).
• Copy of the mortgage note and deed of trust; mortgage account number.
• Your ID and financial documents (pay stubs, tax returns) if the lender will underwrite an assumption or refinance.

7) Practical timeline and costs

Expect weeks to months depending on whether probate is required, whether the lender will underwrite an assumption, and whether you need a refinance. Costs can include probate fees, court filings, loan assumption fees, appraisal and closing costs for a refinance, title insurance updates, and possibly transfer taxes or recording fees.

8) When to get legal help

Consider speaking with a Nevada attorney if:

• Title is disputed or other heirs claim the property.
• Probate is required and you are unfamiliar with the process.
• The lender threatens foreclosure or refuses to negotiate despite hardship.
• Complex tax, estate, or creditor issues arise.

9) Next practical steps — checklist

1. Locate and secure the will, deed, mortgage documents, and death certificate.
2. Check the deed for joint tenancy, community property with rights of survivorship, or a recorded TOD deed.
3. Notify the mortgage servicer and ask what they require to continue payments, assume the loan, or refinance.
4. If probate is required, contact the probate court or a probate attorney to open the estate and obtain authority to act.
5. Compare options (assumption, refinance, sell) and pick the one that fits your finances and goals.

Helpful Nevada statute resources: Nevada Revised Statutes home: https://www.leg.state.nv.us/NRS/. For property and conveyance provisions (start here): https://www.leg.state.nv.us/NRS/NRS-111.html. Federal rules on due-on-sale clauses: 12 U.S.C. §1701j‑3.

Helpful Hints

• Get certified copies of the death certificate early — lenders and county recorders will ask for them.
• Even if a loan has a due-on-sale clause, lenders often prefer to work with heirs rather than foreclose. Open a dialogue early and document all communications.
• If you plan to keep the home, check your credit and be ready to refinance so you can remove the decedent’s loan if the servicer refuses assumption.
• If selling, calculate net sale proceeds after paying the mortgage, closing costs, and any probate expenses before deciding.
• Keep careful records of any mortgage payments you make after the borrower’s death — this protects you if the lender later questions payments.
• Ask the lender about hardship programs or mortgage modification if continuing payments will cause financial strain.
• Contact the county recorder to confirm whether any beneficiary deeds or survivorship interests are recorded; that may avoid probate.