Detailed Answer

Short summary

When someone dies in Texas, debts tied to the decedent’s property—such as mortgages and utility bills—do not automatically disappear. The personal representative of the estate is generally responsible for preserving estate assets and paying necessary expenses from estate funds. If mortgage payments stop, the lender can enforce its lien (which may lead to foreclosure if the debt is not cured). Utilities can be disconnected if bills are not paid. Heirs who receive property through probate take the property subject to existing liens and ongoing obligations.

Who controls payments during probate?

After a Texas court appoints a personal representative (also called an executor or administrator), that person gains legal authority to manage estate property and pay debts within the limits set by the Texas Estates Code. The personal representative should secure and maintain property so its value does not decline. If the estate has cash or liquid assets, the representative may use estate funds to pay mortgage installments, property taxes, homeowners insurance, and utilities as needed to preserve the estate.

Reference: general provisions governing administration of estates are in the Texas Estates Code (see the Estates Code overview): https://statutes.capitol.texas.gov/?link=ES.

Mortgage payments — who pays and what happens if they stop?

Mortgages and deeds of trust remain secured liens on the real estate after the borrower’s death. The debt does not vanish on death. Practical consequences:

• If the estate has sufficient funds, the personal representative should pay mortgage installments from estate funds to avoid default and preserve the asset.
• If heirs inherit the property (via will or by intestacy) and want to keep it, they must either continue payments, assume or refinance the loan (if the lender allows), or otherwise resolve the mortgage. If they fail to do so, the lender may pursue foreclosure under Texas law.
• If the estate lacks funds and heirs do not want the property, heirs may disclaim the property. Disclaimed property passes according to the will or intestacy rules and remains subject to the mortgage; the lender retains its foreclosure and collection rights.

Nonjudicial foreclosures and lender remedies are governed by the Texas Property Code. Lenders must follow state foreclosure rules and notice requirements before selling a property: https://statutes.capitol.texas.gov/?link=PR (see provisions about deeds of trust and foreclosure procedures).

Utilities — who pays and what happens if service is cut?

Utilities (electricity, water, gas, phone, internet) are typically services provided under a contractual account with the decedent. If the account holder dies:

• Providers may require the personal representative or a new account holder to register the account and provide proof of authority to manage the estate or the property.
• Unpaid utility bills become creditor claims against the estate. The personal representative should pay utility bills that are necessary to maintain and protect estate property (e.g., electricity, water, HVAC in cold weather) so that property condition and value are preserved.
• If utilities are not paid and service is disconnected, the property could be damaged or its value reduced, which harms creditors and heirs and may complicate sale or transfer.

Priority of payments — what gets paid first?

Texas law and common probate practice treat certain expenses as necessary to preserve the estate (administration costs, funeral expenses, taxes, mortgage arrearages that threaten foreclosure, and costs to maintain property). The personal representative must follow statutory rules and the court’s orders in how estate funds are used. Specific priority rules can be complex; the Estates Code and related rules guide distributions and creditor claims. See the Estates Code for administration rules: https://statutes.capitol.texas.gov/?link=ES.

What if the decedent owned the home outright?

Even if the decedent owned the home free of mortgage, unpaid utility bills and other liens or taxes may attach to the property as claims against the estate. The personal representative should clear liens and pay essential bills or arrange for sale/transfer consistent with probate procedures.

What if the estate has no money?

If the estate lacks cash to pay mortgage and utilities, the personal representative has limited options: negotiate with the lender for a forbearance or payment plan, ask heirs to advance funds, allow the property to be foreclosed or abandoned, or seek court guidance. Lenders typically will not immediately accelerate a loan simply because the borrower died, but they will enforce remedies on default. Utility companies may require a new account holder and a security deposit before resuming service.

Practical example (hypothetical)

Hypothetical: A decedent dies leaving a house with a mortgage and two adult children as beneficiaries. The court appoints a personal representative. The representative locates the mortgage statement and discusses options with the lender. While probate proceeds, the representative uses estate cash to pay the mortgage and utility bills to prevent foreclosure and maintain the property’s condition. If the estate lacks funds and the heirs want to keep the house, they arrange to refinance or assume responsibility for payments subject to the lender’s approval. If neither the estate nor the heirs can pay, the lender follows Texas foreclosure procedures.

When to get legal help

If mortgage, foreclosure, tax, or utility issues threaten an estate property, consult a probate attorney familiar with Texas law. An attorney can advise on the personal representative’s duties, negotiating with lenders, defending against inappropriate creditor claims, or seeking court authority to sell or manage property. This is especially important if the estate lacks liquidity or if heirs dispute who will maintain payments.

Relevant state resources (Texas statutes and codes):

• Texas Estates Code (probate administration rules): https://statutes.capitol.texas.gov/?link=ES
• Texas Property Code (mortgages, deeds of trust, foreclosure procedures): https://statutes.capitol.texas.gov/?link=PR

Helpful Hints

• Notify the lender and utility companies promptly after the death. Lenders often have policies for dealing with deceased borrowers; utilities may allow temporary service continuation under new account terms.
• Locate the mortgage statement, homeowners insurance, and recent utility bills early. These documents help the personal representative prioritize payments.
• Secure and insure the property. Maintaining insurance and preventing damage protects the estate’s value.
• Use estate funds for necessary preservation expenses where available. Keep detailed records and receipts; the personal representative must account for expenditures to the court and heirs.
• If you are an heir who wants the property, talk to the lender quickly about options (assumption, refinance). Don’t ignore notices—foreclosure deadlines are time-sensitive.
• Consider short-term arrangements (payment plans, forbearance) with the lender if the estate needs time to sell the property or gather funds.
• Consult a probate attorney if the estate lacks funds, if foreclosure is threatened, or if there’s a dispute among heirs about who will pay ongoing obligations.