Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight
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1) What happens at one's death if there is still a mortgage is that this mortgage accelerates
, meaning that it becomes due immediately. As such, the estate's representative may then: (a) pay it and then give the home to the beneficiaries
of the estate, or (b) not pay, and allow the lender to foreclose on the home.
2) If there is no probate held, then a major creditor may force
a probate matter. Technically, a lender may force a probate. However, the lender is more likely to simply foreclose on the home and call it the end for that matter.
3) As such, it is best to leave in one's Will the instructions of whether one wants to (a) have the estate pay for the home and pass the home on, or (b) not pay for the home and simply give the home back to the lender.
4) Now technically
, if someone gets the home foreclosed upon, the lender can attack the estate after the foreclosure
for the deficiency
, which is the difference between the money that was owed and what the foreclosure sale brought. If so, then money LEFT in the estate may be attacked. However, many lenders generally do not pursue deficiency judgments against estates, as it gets very complicated and the litigation
cost is not worth the return.
I hope this helps and clarifies. Good luck.
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