Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

What happens when the mortgage payer dies, but the rest of the family can't afford to pay it?

16 Answers

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  • Anonymous
    1 month ago
    Favorite Answer

    Short answer?   The house is sold and the family moves out.

    When someone dies, their debts and assets become part of their estate.   The estate must be "settled".   That means their assets are sold to pay off the debt.   Anything left over is distributed to heirs.

    The family may get to keep the house if the deceased person has enough other money/assets to pay off the mortgage in full and has also left their assets to the family in their estate plan.

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  • Judy
    Lv 7
    1 month ago

    They sell the house, or it gets foreclosed.

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  • 1 month ago

    You talk to the bank and a lawyer.

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  • Anonymous
    1 month ago

    Eviction. Unless they sell it first.

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  • 1 month ago

    Typically the house is sold and the proceeds are divided among the heirs. Hopefully they can find the money to pay the mortgage until the sale. If the house isn't worth enough, compared to the morgage and other debts on it, then the bank would foreclose on the mortgage, take the house back, and then sell it for whatever they could to minimize their loss.

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  • 1 month ago

    If the mortgage doesn't get paid for a long enough period of time the bank is going to foreclose.

    This is why anyone who's paying a mortgage on a house that has a spouse, kids, or other family members relying on them should have life insurance.

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  • Eva
    Lv 7
    1 month ago

    Unless there is enough life insurance to pay off the mortgage, the family needs to sell the house before it gets foreclosed on.

    • Lili
      Lv 7
      1 month agoReport

      Mortgage insurance is what you're supposed to buy to protect survivors in case of the death of the mortgage holder.

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  • Anonymous
    1 month ago

    The house gets sold or the bank will foreclose 

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  • 1 month ago

    The property will have to be sold.

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  • Anonymous
    1 month ago

    The lender gets to foreclose on the property and sell it to get their money.

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