Detailed Answer

If your parent died owning a home subject to a mortgage, you have a few common paths to keep the house and the loan. Which path works depends on how the property is titled, whether the lender will allow an assumption, and how the estate is handled under North Dakota law. This section explains the typical steps, legal mechanics, and practical considerations.

1. Identify how title passes

• If the house was owned as joint tenants with right of survivorship, ownership usually passes immediately to the surviving joint owner (no probate required). You should record a death certificate with the county recorder/register of deeds to update title.
• If the house had a transfer-on-death or beneficiary deed (if used), ownership passes to the named beneficiary outside probate.
• If the decedent left a will, or owned the property in their name alone without a beneficiary, the property normally passes through probate. North Dakota probate procedures are in the North Dakota Century Code; see the probate title for more on administration and appointment of a personal representative: https://www.legis.nd.gov/cencode/t30.1

2. Check the mortgage terms and lender policy

Read the mortgage note and deed of trust for an assumption clause and for a “due-on-sale” or acceleration clause. Most mortgages contain language that allows the lender to accelerate the loan (require full repayment) when title transfers. However:

• Some lenders permit formal loan assumptions if you qualify under their underwriting standards. That means the lender runs your credit, income, and approves you to take the mortgage in your name.
• If the lender refuses to allow assumption, the typical alternatives are refinancing the loan in your own name or allowing the lender to foreclose if payments stop.
• Contact the lender early. Ask whether they allow assumptions, what documentation they need (death certificate, probate documents, proof of income), and whether they require an appraisal, fees, or a full refinance.

3. Who can act for the estate?

Only an executor or personal representative (if appointed through probate) or a surviving joint owner/beneficiary (if title passes outside probate) can convey or legally act on the property. If probate is required, the court authorizes a personal representative to sell, transfer, or manage estate assets subject to ND probate rules: https://www.legis.nd.gov/cencode/t30.1

4. Common options to “take over” the mortgage

• Assume the loan (if lender permits). You step into the mortgage and become primarily responsible for payments. Lender approval and paperwork are required.
• Refinance the mortgage in your name. This removes the deceased borrower from liability and replaces the mortgage with a new loan under your credit profile.
• Transfer title to you while keeping the loan in the decedent’s name (rare and risky). If the loan has a due-on-sale clause, the lender could call the loan due after a transfer that triggers that clause.
• Sell the property out of the estate and pay off the mortgage from sale proceeds, if that makes sense financially.

5. Practical steps and documents you will need

1. Obtain certified copies of the death certificate from the county where your parent died.
2. Locate the mortgage note, deed of trust, deed, homeowner’s insurance, and recent mortgage statement.
3. Contact the mortgage servicer. Inform them of the death and ask what steps they require to allow assumption or to process payments from the estate or a successor owner.
4. If probate is required, file for appointment as personal representative (or allow the named executor to proceed). North Dakota probate forms and self-help information are available from the state courts: https://www.ndcourts.gov/legal-resources/self-help/probate
5. Get a title search or contact the county register of deeds to confirm how title is held and whether there are other liens or judgments.

6. Costs, timelines, and common hurdles

• Lender fees: assumption or loan modification fees, appraisals, and underwriting costs are typical.
• Probate time: if probate is needed, the process can take months depending on estate complexity and court backlog. North Dakota statutes govern probate procedures and timelines: https://www.legis.nd.gov/cencode/t30.1
• Credit and underwriting: to assume or refinance, you usually must meet the lender’s credit and income standards.
• Taxes and liens: unpaid property taxes or other liens must be cleared or addressed during a transfer or sale.

7. If you are on the mortgage but not on title (or vice versa)

The person on the mortgage note is personally liable to the lender. The person on title owns the property. If you already co-signed the loan but were not on title, you remain financially liable even if title passes elsewhere. If you have title but not the mortgage, you may be able to refinance into your own name or assume (if the lender allows).

8. When to talk to an attorney

Talk with a North Dakota attorney if the situation involves contested wills, unclear title, creditor claims, or if the lender refuses to work cooperatively. An attorney can explain ND probate rules, help you get appointed as personal representative if needed, negotiate with the lender, and prepare deed transfers or sale documents. North Dakota probate and real property laws are in the North Dakota Century Code: https://www.legis.nd.gov/cencode

Quick summary: Start by checking how title passes. Contact the mortgage servicer to learn if an assumption is possible. If probate is needed, follow North Dakota procedures to get authority to act. If the lender won’t allow assumption, plan to refinance or sell. Get legal help if title, probate, or creditor issues arise.

This is not legal advice. It is a general explanation of options under North Dakota law for informational purposes only. Consult a licensed North Dakota attorney to apply the law to your particular facts.

Helpful Hints

• Gather documents before calling the lender: certified death certificate, mortgage statement, deed, and the decedent’s will (if any).
• Ask the servicer specifically whether an assumption is allowed and what underwriting standards apply.
• Record the death certificate with the county register of deeds only after you understand how title should be shown (consult an attorney if unsure).
• Check for simplified or small‑estate procedures that might let you transfer title with less formal probate—ask the clerk of court or an attorney about North Dakota’s probate summary procedures: https://www.ndcourts.gov/legal-resources/self-help/probate
• Get a title search early to find other liens, judgments, or co-owners that could block a transfer.
• Budget for appraisal and refinancing costs if the lender requires a refinance rather than an assumption.
• Keep making mortgage payments on time (or arrange escrow payments) while you sort out ownership to avoid foreclosure risk.
• Consider a short consultation with a real estate attorney to review documents before signing anything binding with the lender.

Relevant North Dakota legal resources:

• North Dakota Century Code (general): https://www.legis.nd.gov/cencode
• Probate title and statutes (probate administration and personal representative authority): https://www.legis.nd.gov/cencode/t30.1
• North Dakota Courts — Probate self-help information: https://www.ndcourts.gov/legal-resources/self-help/probate

Again — this is not legal advice. Consult a licensed North Dakota attorney for guidance tailored to your situation.