My parents have passed away, do I still have to pay their mortgage?

1 answer | Last updated: Jan 22, 2012
hicks1911 asked...
Both my parents recently passed away. Neither one had wills. If they still had a mortgage on their home, what happens now ? They also did not have a power of attorney.
 

Caring.com User - Barbara Steinberg
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Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their...

Since your parents have both passed away, you need to know who is responsible for paying the mortgage. The mortgage is attached to the property, your parents' house. When your See also:
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parents took out the mortgage, the house became collateral for the loan. The property will pass to your parents' heirs according to the laws of the state your parents lived in. If the house is transferred either by inheritance or by sale, the mortgage will come due. The mortgage provider can foreclose on the property if the mortgage is not paid off. If you sell the house, the mortgage can be paid off from the proceeds of the sale. If you inherit the house, the mortgage most likely needs to be paid off. This can be done with a new mortgage on the property taken out by you.

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