What the foreclosure process in the event of the death of the mortgagee ?

8 Replies

Hello Everyone,

What the foreclosure process in the event of the death of the mortgagee ? 


Situation may differ/vary based on state & lender. You may be able to find some information on the lenders website or speak with an attorney.

Generally, it's the same...they name "the estate of...."  and serve to last known and property address.  No increased delays.   It's up to the heirs if they want to initiate probate and avoid the foreclosure.

Hello.....the mortgagee IS the lender, the mortgagor is behind the door.

Note holder dies, the note is part of the estate and the payments are still due as required under that obligation. It is up to the administrator or executor of the estate to collect payments and deposit them as agreed.

If a mortgagor dies, the estate becomes obligated to pay as agreed, state law applies a time line for estate settlements and the ability to foreclose, so a note holder can't lower the hammer and the heirs assume the obligation without qualification. :) 

Oh crap! My combination of halfheimers and quick reading...assumed the common situation of the borrower dying.

Since the OP used the term "mortgagee" meaning lender/note holder, I'm betting she meant, 'What happens when the borrower dies?'

In CA, secured lenders may foreclose on a note secured by trust deed based on a breach of terms. 

This applies whether living, lost, luny or dead. 

I don't read minds through the internet, so I addressed both.

Rick, another good reason to avoid Cali, anything to be different seems to be a theme in the Cali legislature.

That may well be, they may have the right, probably not an obligation, probably available for private lenders, hmls, commercial, I can see that going to court too,  if the heirs were qualified and there was no additional risk to the lender.......more over, don't hear of secondary market mortgages foreclosing when a borrower dies. :)  

awful piece of information,  let me tell you, Here i get the best information. This is just the kind of information that i had been looking for, Thanks a million once again !!

Well, that clears that up!

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