Understanding Why an Inherited House May Not Be a Probate Asset in Tennessee — And Whether You Can Make Mortgage Payments to Avoid Foreclosure

Short answer: A house you inherit may pass outside probate in Tennessee if title already named a surviving owner or beneficiary (for example, joint tenants, a transfer-on-death deed, or a trust). Even when a property passes outside probate, the mortgage lien generally remains attached to the property and the lender can enforce the loan. You (or the person who now holds title) can make mortgage payments to avoid foreclosure without waiting for a court-appointed administrator in many situations—but the exact steps and risks depend on how title passed, whether the mortgage is current, and the servicer’s requirements under Tennessee law.

Detailed answer — how Tennessee law treats inherited property and mortgage obligations

1. How property can pass outside probate in Tennessee

Tennessee law separates assets that must go through probate from assets that pass directly to a beneficiary or co-owner by operation of law. Common ways a house can avoid probate include:

• Joint tenancy with right of survivorship: When title is held by more than one person as joint tenants, the surviving joint tenant typically becomes the sole owner automatically when one owner dies.
• Transfer-on-death or beneficiary deed: Some states allow deeds that name a beneficiary who receives title at the owner’s death. If a valid beneficiary deed exists, the property passes to the named beneficiary without probate.
• Trust ownership: If the house is titled in a revocable trust, the trustee follows the trust document and transfers title outside probate.
• Right of survivorship in tenancy by the entirety: For married couples who hold title this way (where recognized), the surviving spouse obtains title automatically.

These nonprobate routes mean there is no need for an administrator to transfer title when the owner dies. For Tennessee probate statutes and general rules about administration, see Tennessee Code Annotated, Title 30: Probate and Administration: https://www.capitol.tn.gov/legislation/title-30.html

2. Does the mortgage go away when the owner dies?

No. A mortgage is a lien against the property. Even when title passes outside probate, the lien typically survives and remains attached to the property until it is paid or released. That means the lender usually retains the right to collect, and ultimately to pursue foreclosure under Tennessee law if payments stop. For laws governing foreclosure and enforcement of liens, see Tennessee Code Annotated, Title 35: Actions and Proceedings: https://www.capitol.tn.gov/legislation/title-35.html

3. Can you make payments to avoid foreclosure without the administrator?

Yes, often you can. Who should make payments and how depends on who now holds title and what the loan documents require:

• If you already hold title (for example, you were joint owner or named beneficiary), you can contact the loan servicer, prove your ownership (death certificate and recorded deed or beneficiary documentation), and make payments or apply for loss-mitigation options in your name. The lender will generally accept payments from the current owner to avoid foreclosure.
• If the property passed to a trust, the trustee (not an administrator) has the authority to manage trust assets, including making mortgage payments.
• If the decedent’s estate holds title (for example, title vested in the estate because there was no nonprobate device), only the personal representative or administrator has authority to act for the estate. In that case, payments from someone else might be accepted, but an administrator typically must be appointed to clear title or negotiate with the lender for a full resolution.
• If you are occupying the home but do not hold title, you can still make payments to preserve the property and show good faith, but you should (1) get written agreement from the lender accepting payments from you and (2) understand that making payments does not automatically give you ownership rights.

4. Practical steps to avoid foreclosure after a death

1. Contact the mortgage servicer immediately. Ask for a loan-account status, a current payoff or reinstatement figure, and what documentation they need to recognize a new owner.
2. Gather and provide documents the servicer requests: death certificate, recorded deed or beneficiary documents, trust documents, and photo ID for the person making payments.
3. Request loss-mitigation options if the loan is delinquent: reinstatement, loan modification, forbearance, short-term repayment plan, or deed-in-lieu—options and timing vary by servicer.
4. Keep clear, written records of all payments and communications with the servicer. Make payments by traceable methods (check or bank transfer) and obtain receipts.
5. If the servicer refuses to accept payments from you, consider seeking counsel. If title passed outside probate, an attorney can help you force a servicer to deal appropriately with a lawful owner.
6. If foreclosure is already in motion, act quickly: foreclosure timelines are limited and lenders must follow statutory procedures (see Tennessee foreclosure rules at https://www.capitol.tn.gov/legislation/title-35.html).

5. Common complications

• If a decedent’s will devises the house to someone but title is still in the decedent’s name and a nonprobate device doesn’t apply, the property usually must go through probate before marketable title issues can be resolved.
• If taxes, insurance, or utilities are unpaid, the property may be at additional risk even if you make mortgage payments. Address those obligations promptly.
• Disputes among heirs or co-owners can delay actions. Courts may need to resolve competing claims before the title can be cleared or sold.

Helpful hints — quick checklist to protect an inherited home in Tennessee

• Confirm how title passed: recorded deed, beneficiary deed, trust, or joint tenancy.
• Contact the mortgage servicer as soon as possible and get their requirements in writing.
• Provide the servicer with a certified copy of the death certificate and proof of your ownership or authority to act (recorded deed, beneficiary documentation, or trust paperwork).
• Keep making payments if you can and get written confirmation of acceptance and how payments will be applied.
• Ask about available loss-mitigation options if payments have lapsed.
• If you’re not on title but paying, get a written agreement outlining your rights and whether payments will be credited toward ownership, rent, or reimbursed.
• If the servicer will not cooperate, consider contacting a Tennessee attorney who practices probate or real estate law to protect your rights and prevent wrongful foreclosure.

Where to read Tennessee law: Tennessee Code Annotated, Title 30 (probate and administration): https://www.capitol.tn.gov/legislation/title-30.html; Tennessee Code Annotated, Title 35 (actions and foreclosure procedures): https://www.capitol.tn.gov/legislation/title-35.html; Tennessee Code Annotated, Title 66 (property and conveyances): https://www.capitol.tn.gov/legislation/title-66.html

Final note (important): This article explains general Tennessee concepts and practical steps but is not legal advice. The right approach depends on your exact facts—who holds title now, what the mortgage documents say, whether a trust or beneficiary deed exists, and how far a lender is into a foreclosure. For help tailored to your situation, consider speaking with a Tennessee attorney who practices probate and real estate law.