Can I Inherit Mom's Mortgage When She Dies?

In many families our home is our most valuable possession. We invest a lot in order to have our homes - time, money, work, love, and often tears. It is the place where we gather with those we love. We have dreams of the future, share memories of the past, and plan for tomorrow. as they say "Home is where the heart is."

When we think about losing a loved one we can also be faced with losing the place that holds those memories - the family home. 

 The family politics surrounding the family home can be interesting. Just like with the stuff that is inside of it some might not want it for themselves, but hate the idea of seeing it gone to strangers. Sometimes someone does not want the home to be sold, they do not want it themselves, and they do not want a sibling to have the home either. As with all things related to losing a family member, the internal politics can be... complicated.

Though figuring out the answers related to the family politics is not a legal analysis, the question of how to keep the family home can be made easier knowing that the mortgage company cannot call the loan due when it transfers to a beneficiary through an estate plan, and it also cannot apply the mortgage company's ability to pay rule.

Most mortgages contain an acceleration clause that will allow a mortgage company to call a note due "if all or any part of the property, or an interest therein, securing the real property loan is sold or transferred without the lender's prior written consent." But Federal law prohibits a lender from implementing an acceleration clause where the property is transferred to a relative upon the death of the borrower. This provision allows an heir to retain a property after inheritance without worrying that the mortgage holder will call the note due when it transfers into their name.

So now that you have discovered that you can in fact keep the mortgage on the family home without worrying that the lander is gong to call the note due when you inherit it, do you need to worry about being able to qualify for the mortgage? The answer to this related question is also a solid no. As long as you can continue to pay the mortgage the mortgage holder cannot make you reapply for a loan on the property. You can instead start paying on the same terms as were available to the person you inherited the property from, and can even apply for a modification of those loan terms.

Losing someone you love is a difficult enough time to also be worried about being able to qualify for an obtain a mortgage in order to keep the family home. Luckily we are protected from these difficult challenges and can instead focus on the more pressing concerns of learning to live in a whole new world without someone we love. 

Do not allow the fear of how your things will be taken care of when you are not able to take care of them keep you from putting your plan in place. Reach out today and start planning for what will happen to the family home so those you love will not have to do so  once you are gone.

The Options are Limitless

"I chose not to have children, so I do not need an estate plan." 

This statement is generally true, but it is generally true for all of us, not just those of us who choose not to have children. The state has designed an estate plan that any of us can follow if we do not put one together ourselves.
The problem is that the estate plan designed by the state is probably not going to be the one we would choose for ourselves. Everything we worked for in life will end up going to the niece we never knew, or the brother who never came to visit. Or it could all just end up going to the state. The process is called probate, and how probate works is a discussion for another day.

While an estate plan is not necessary for anyone, it is certainly something that is desirable for all of us. We work hard in our lives, when we are no longer here we have the ability to share with the things that matter to us. This is especially true if we have anything that we care about in life.
We have the option of sharing our assets any way we choose.

• Have pets? Make sure they are taken care of.
• Love animals? Donate to your favorite animal welfare organization.
• Love books? Set up a scholarship fund for writers.

Making the choice to not have children does not mean that you do not want a say in how your things are treated when you are gone. For some, this act of not having children was a conscious choice and we can make another conscious choice to distribute our accomplishments in the way that we chose to live our lives - with deliberation. We can choose to give to the things we care about.

The options are as limitless as your imaginations.

A Time to Assess

Now that the holidays are behind us, and the excitement, anticipation, and stress of the season are no longer bearing down on us and clouding our minds, we can turn to reflect on our experiences at the holidays. Though it may seem strange, this is a great time to assess whether those we love are in need of greater assistance than we realized.

There are many people who we only see once or twice a year, and the holidays are often that time. This makes the perfect time to reflect on our experiences and see how we feel about how our loved ones are doing. It is hard to think about our parents and grandparents needing help, but it is even harder to think about them being alone and not having their needs met.


The fun and excitement of the holidays is a great time to spend with the ones we love. It also can be a time where our loved ones are able to mask and hide how life really is for those who are getting older. With the hustle and bustle of family gatherings and all the accompanying work, being tired and forgetful might be normal, but at the same time it might not. Having nothing in the house to eat except what is needed for the family feast might be a sign that someone we love is struggling, either to go shopping or financially to afford groceries.

After the holidays is a great time to check back in with those ones we love and talk to them about how life is. With all the joy of having family close to them behind them it is not to surprising to think that depression can follow, especially for those living alone or far from close family. It is also a great time to find out who our loved ones friends are and to make sure we have their contact information and they in turn have ours as well.

In the excitement of the season it can be easy to overlook signs that someone we love needs help, but with a little reflection we can sometimes spot something early enough to help those we love be able to make decisions for themselves about changes that need to be made. We can help them see that they need someone to come in once a week to help with the house, or that they need someone to bring them their groceries.

This can be a good time to talk to our loved ones and make sure they have thought through how they want things handled if they cannot do so themselves and to encourage them to find an estate planning attorney they like and trust to help them decide on and to record how they want things handled for their own lives, allowing them to make their own decisions while they can, saving themselves and their loved ones the pain and strife of having to make legal decisions on their behalf.

If you need help learning what your options are and making sure that they are available for your loved ones to follow, or if someone you know could use some help, reach out to me. I can help you or those you care about, decide how you want things to be handled and put a plan together that reflects your choices.

Disclaimer: The materials contained on this page is for general informational purposes, it should not be considered formal legal advice and does not create a formal lawyer/client relationship