Can you inherit a house that is not paid off?
Emma Miller
Updated on February 05, 2026
If your loved one owned a home and owed a mortgage debt, you may inherit one or both. Debts must be paid out of estate assets before the remaining assets are transferred to the beneficiaries named in the will or, if the deceased died without a will, to next of kin according to state intestate law.
What happens if someone dies and their house isn’t paid off?
When the homeowner dies before the mortgage loan is fully paid, the lender is still holding its security interest in the property. If someone doesn’t pay off the mortgage, the bank can foreclose on the property and sell it in order to recoup its money.
What happens to an estate if there are no heirs?
If a person dies without any heirs, a creditor or other interested party may petition the court to open an estate. Whatever assets remain after the decedent’s debts are paid would be subject to state laws. Laws vary, but many states provide that the assets of an estate with no heirs go to the state.
Who is responsible for paying off a house in probate?
The executor is the person charged with shepherding the estate through probate. If there is a will, it will specify who gets the house and whether or not that person also takes on the mortgage. A beneficiary taking on the house debt must either pay off the mortgage entirely, make regular mortgage payments, refinance or sell the property.
What happens if a homeowner dies before the mortgage is paid off?
Sometimes a homeowner dies before the mortgage is paid off, leaving behind a debt to go with their legacy. Find out what you can do if a loved one dies and leaves you inheritance property with a mortgage, and what kinds of options you have for your new property. What Becomes of the Assets and Debts of the Decedent?
What happens to the house after someone dies?
Probate and the house: Transferring property after someone dies. Probate is a court-supervised legal procedure where beneficiaries legally obtain the financial and physical assets promised to them in a will and clear the debts of an estate.
