Inheriting the Home and the Mortgage that Goes with It

Inheritance law should be pretty transparent, although there are common questions which stump many who are not familiar with it. Unless a family receives most of its assets through inheritance, this is the case for many people. A home is one of the main assets passed down after someone becomes deceased. In the case that the property was not owned outright, the property will still have a mortgage attached to it. It is possible to sell the house, although there are a few tips and tricks to make the process a little easier. Consider the meaning of the mortgage. It is essentially a loan acting as a property line. This lien is not attached to the person who took out the loan. A low stress comparatively easy process can result if these ideas are taken into mind upon sale.

Mortgage and Property Assessment

Upon inheritance it may be time to examine an active mortgage for said property. In the stressful even of a person’s death, this can be hard to do in itself. This home can indeed be sold, as the personal debt component that most people associate with a mortgage, is not viable here. Anyone can pay off the mortgage. The debt is property focused. It is a good idea to get the property assessed for possible ways in which to make the house more marketable. One would be surprised about housing trends. Whether brand new, or old and Victorian, there are buyers out there of every taste.

Locate the Deed

The inheritors should have possession of the home’s deed. This should not be difficult to obtain and any lawyer outlining a will for the deceased should be able to provide this information for the inheritors. A mortgage broker will also need the deed for transacting with buyers. While the mortgage does not create ownership, deeds do, unless defined with special circumstances, create legal ownership in that property. A deed allows one to easily sell the house regardless of any inherited mortgage on it. Deeds are necessary here, but separate from the mortgage, which is passed on to the people who are going to buy the house. In very unusual circumstances, it might be time to contact a mortgage agent in Kitchener.


The mortgage lender will expect payment in the occurrence of inheritance, however this is only while the said home is on the market, and no one has bought it yet. Employment of a lawyer and qualified mortgage broker can speed up the process of getting a lien sorted out before sale. This can be a struggle in the case of housing markets which aren’t moving quickly. In the case of a house that stays on the market for years, one will have to pay this mortgage in the meantime. If there is a lien attached to the house, they must be paid off. Communication with the holders of the mortgage, liens, and other monetary debts attached to the house are absolutely essential. It can be a lot of paperwork, but worth it in the long run.

Mortgage Lenders

Speaking of mortgage lenders, this is a very important point. Although lenders are not picky about who is paying back the loan, they will require payment, despite inheritance. In the event that an inherited property seems to possess no payment arrangements, or the inheritors do not come forward regarding the home, lenders will foreclose and repossess the home of the deceased. This is why opening up channels of communication early is crucial to keep the conditions of the loan current so the home can be sold. Trust a quality mortgage agent in Kitchener for advice on special circumstances in the event of an inherited house.

Irene R.

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