What Happens When You Inherit a House With a Mortgage? Your Rights and Options Explained
Briefly

Inheriting a house with a mortgage involves taking on the responsibility of ongoing loan payments and related costs. If the deceased homeowner had not paid off the mortgage, the debt transfers to the beneficiary. Beneficiaries typically face three options: to assume the mortgage and keep the house, to sell the home, or potentially explore other alternatives. The Garn-St. Germain Act protects heirs from immediate foreclosure, allowing time for decision-making in this complex situation.
You typically become responsible for the mortgage payments after inheriting a home, deciding whether to keep, sell, or explore other options.
You have the option to keep the house and take over the mortgage payments, or sell it, providing flexibility in a challenging situation.
Under the Garn-St. Germain Act, lenders cannot force immediate payoff or foreclosure when a property is transferred to a relative after death.
Inheriting a home with a mortgage means you need to address ongoing payments, property taxes, and insurance, bringing both opportunity and uncertainty.
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