Overview — what generally happens when a homeowner dies

When a homeowner dies, two separate legal questions determine who keeps the house and who is responsible for the mortgage:

• Who owns title to the property after the death? (Title passes according to the deed, joint-tenancy rules, a transfer-on-death designation, a will, a trust, or Oregon intestacy rules.)
• What does the mortgage contract require? (Most mortgages remain a debt of the estate and/or the person who signed the loan; the lender’s consent is usually needed to transfer or assume the loan.)

Both issues matter. Even if you inherit the house, the mortgage stays attached until it is paid, refinanced, or the lender agrees to a formal assumption.

Typical step-by-step process in Oregon

Below is a practical checklist you can follow. A short hypothetical fact pattern: your father died owning the home in his name alone, there is an outstanding mortgage, and you want to keep the house.

1. Confirm how title passes.

   Look at the deed and estate documents. Common ways title passes in Oregon:

   • Joint tenancy with right of survivorship — surviving joint owner becomes sole owner automatically.
   • Transfer-on-death (TOD) deed — the beneficiary named on a valid TOD deed becomes owner automatically at death.
   • Will or revocable trust — transfer occurs according to those documents but may require probate or trust administration.
   • No will (intestacy) — state intestacy rules control who inherits.

   If title passed to you automatically (joint tenancy or valid TOD), you already own the property and must still address the mortgage.

2. Obtain certified copies of the death certificate and the recorded deed or probate documents.

   You will need certified death certificates to present to the mortgage lender and to complete any title work or probate filings.

3. Determine whether probate or trust administration is required.

   If the property does not transfer automatically by deed or survivorship, the estate likely must be administered under Oregon probate rules before title can be transferred. Oregon courts and forms explain probate and small‑estate procedures; see Oregon Judicial Department probate resources for guidance.

   Oregon probate rules and intestacy law can affect how and whether you can transfer title without a full probate. See resources from the Oregon Judicial Department and the Oregon Revised Statutes for probate and inheritance rules:

   • Oregon Judicial Department — Probate and Estate Administration
   • Oregon Revised Statutes, Descent and Distribution (ORS Chapter 112)
   • Oregon Revised Statutes, Administration of Estates (ORS Chapter 114)
4. Notify and talk to the mortgage lender quickly.

   Call the lender, tell them the borrower died, and ask what documents they need to continue payments, allow an assumption, or permit a refinance. Lenders typically require a certified death certificate and proof of how title transferred (for example, a recorded TOD deed, a recorded new deed from probate, or letters testamentary/letters of administration).

   Important points with lenders:

   • Lenders may permit an assumption (transfer of the mortgage to you) but generally require a credit check and underwriting.
   • If you cannot qualify to assume or refinance, you remain responsible to keep payments current only to the extent you actually signed the note or personally assumed liability. If you did not sign the mortgage, the lender’s remedy is usually against the property (foreclosure), not you personally, unless you expressly assumed the debt.
   • Keep paying the mortgage if you want to preserve the home and you can afford it while you sort title and loan issues.
5. If the lender will not allow assumption, explore refinance or estate options.

   Refinancing the mortgage in your name is the most common way heirs keep a home when the lender will not allow direct assumption. That requires qualifying for a loan based on your credit, income, and assets.

   If refinancing is not possible and the estate lacks funds, the estate representative (executor or personal representative) may need to sell the property to pay the mortgage and creditor claims.

6. If you need quiet title or to record a deed, complete the legal transfer first.

   Only after title transfers (by recorded deed from probate, recorded TOD deed, or survivorship) can you record documents showing you own the home. The recorded title instrument is what the lender will look at when considering assumption or refinance.

7. Watch deadlines for mortgage payments and estate creditor notices.

   The estate must pay valid creditor claims, including the mortgage, in the order Oregon law requires. If payments stop, the lender may accelerate the loan or start foreclosure. Stay in communication with the lender and the estate representative to avoid surprises.

Common scenarios and what they mean

• The house was joint tenancy with you: You usually become sole owner immediately. Contact the lender to discuss assumption or refinance; the mortgage still encumbers the property.
• The house had a transfer‑on‑death deed naming you: You become owner without probate after recording appropriate documents with the county. Provide the lender with a recorded deed and the death certificate.
• The house passed through probate to you: The executor will transfer title to you via deed. After recording the deed, you can seek assumption or refinance.
• No heir can qualify to assume or refinance: The estate may need to sell the property to satisfy the mortgage and other claims.

Relevant Oregon rules and where to read them

Oregon law governs how property passes at death and how estates are administered. Useful places to read more:

• Oregon Judicial Department — probate and estate administration: https://www.courts.oregon.gov/programs/probate/pages/default.aspx
• Oregon Revised Statutes — Descent and Distribution (intestacy): https://www.oregonlegislature.gov/bills_laws/ors/ors112.html
• Oregon Revised Statutes — Administration of Estates: https://www.oregonlegislature.gov/bills_laws/ors/ors114.html

For federal rules that sometimes affect mortgage enforcement (such as limits on enforcing a due‑on‑sale clause in certain transfers), see federal law summaries (for example, 12 U.S.C. § 1701j‑3). A lender’s loan documents and underwriting rules also control practical outcomes.

Helpful Hints

• Get several certified copies of the death certificate early. Lenders, the county recorder, and other agencies will ask for them.
• Locate the deed, will, trust documents, and mortgage note as soon as possible.
• Keep making mortgage payments while you sort title and talk to the lender—nonpayment increases foreclosure risk.
• Ask the lender what paperwork it needs to consider an assumption; many lenders have formal assumption forms and underwriting steps.
• If you’re named personal representative or executor, check Oregon court forms and deadlines at the Oregon Judicial Department site linked above. Consider hiring a probate attorney if the estate is complex.
• If you can’t qualify for a loan alone, consider whether another family member or co‑owner can help qualify for a refinance or assumption.
• Document every call and keep notes of the person you spoke with at the lender, with dates and what was requested.