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How mortgage payments are handled during Wyoming probate

Key points:

• The mortgage is a secured debt attached to the property. If payments stop, the lender can pursue its remedies against the property (including foreclosure) regardless of who holds title.
• The personal representative (PR) should determine whether the estate has money or income to keep making mortgage payments. The PR’s duty includes protecting estate assets and paying estate debts when there are sufficient assets.
• If the estate lacks cash, options include selling estate assets to pay the debt, refinancing or assuming the mortgage (if the lender permits), arranging a deed-in-lieu of foreclosure or short sale with the lender, or abandoning the property to the lender. Any of these usually requires lender involvement and approval.
• Heirs who simply inherit property generally take it subject to the mortgage. They are not personally responsible for making payments unless they signed the loan or otherwise agreed to assume it.

Practical steps for the PR regarding the mortgage:

1. Notify the lender of the owner’s death and provide the PR’s contact information and court appointment papers once available.
2. Review the loan documents to see whether the note contains a due-on-sale clause or whether an assumption is possible. Many loans accelerate on default, but some lenders will work with estates to avoid foreclosure.
3. Use estate funds to pay mortgage payments while deciding whether to keep, sell, or transfer the property.
4. If the estate cannot pay, discuss options with the lender early to avoid surprise foreclosure. Lenders often prefer a solution that avoids foreclosure and may agree to temporary forbearance, a short sale, or a deed-in-lieu where appropriate.

How utilities are handled during Wyoming probate

Key points:

• Utilities (electricity, gas, water, trash, phone, internet) are typically services that require a current account holder. Utility companies will seek payment and may terminate service for nonpayment.
• The PR should contact utility providers immediately to notify them of the death and to learn the provider’s process for continuing service, transferring the account to the estate or to a new account holder, and addressing outstanding bills.
• Utility companies usually require bills to be paid to keep service on. The PR may pay bills from estate funds, or an heir/occupant may put the service in their own name and accept responsibility for current and possibly back bills.
• If the property is vacant and the estate does not intend to continue occupancy, the PR can often shut off nonessential utilities to reduce costs, but should maintain any services required to secure the property (for example, electricity needed to prevent freezing pipes in winter, depending on the property).

Practical steps for the PR regarding utilities:

1. Contact each utility provider and ask about transfer procedures and whether they require an estate representative’s documentation.
2. Pay essential bills from estate funds while you evaluate options for the property.
3. If an heir wants to keep the property, they can usually put the utilities in their own name. Confirm how the provider treats prior unpaid balances (some require satisfaction before new service is issued).
4. Document all communications and keep receipts for estate accounting and for potential claims by creditors or beneficiaries.

Who pays: the estate vs. heirs vs. co-signers

– Estate assets: The estate is generally responsible for the decedent’s debts to the extent funds exist. The PR pays valid claims during probate using estate funds.

– Heirs: Beneficiaries inherit property subject to liens (like mortgages). Receiving an inheritance does not automatically make an heir personally liable for the decedent’s unsecured debts, nor for secured debts unless they signed the loan or agreed to assume it.

– Co-signers/Joint account holders: Anyone who co-signed a mortgage or is a joint account holder may remain personally liable for the debt. Utility accounts with joint account holders may allow the provider to collect from surviving joint account holders.

Timing and risk management

Act quickly. Missed mortgage payments can trigger late fees, negative credit reporting, and lender enforcement actions. Missed utility payments can cause shutoffs and property damage (for example, frozen pipes in winter).

Keep detailed records of all communications and payments. The PR must account to the court and beneficiaries for how estate funds were used.

Where to find Wyoming-specific probate guidance

For procedural steps and forms, see the Wyoming Judicial Branch probate information page: https://www.courts.state.wy.us/self-help/probate/

For state statutes and legislative resources, use the Wyoming Legislature website: https://wyoleg.gov/

When to consult a probate attorney

Consider getting legal help if any of the following apply:

• The estate lacks funds to pay the mortgage and other essential bills.
• The lender threatens foreclosure or you receive foreclosure notices.
• Multiple heirs dispute whether to keep or sell the property.
• Liens, complex debts, or potential creditor claims exist.

Helpful Hints

• Notify the mortgage lender and utilities immediately after the death.
• Secure the property to prevent damage that could reduce estate value.
• Preserve records: keep all bills, payment receipts, and communications in one file for the estate accounting.
• Do not assume heirs are personally responsible for the mortgage unless they co-signed or expressly assumed the loan.
• Ask lenders about hardship programs or temporary forbearance to avoid foreclosure while probate is underway.
• If you live in the house or keep it occupied, consider putting utilities in your name and getting written confirmation about responsibility for prior balances.
• When in doubt, consult a Wyoming probate attorney early — small delays can create larger financial problems later.