What Happens to Your Mortgage When you Die?
When you die, your mortgage does not necessarily disappear, but it will be paid off using the funds from your estate, if there are sufficient funds to do so. If there is not enough money in your estate to pay off the mortgage, the lender may foreclose on the property. If you have named a beneficiary in your will, they will inherit the property, subject to the outstanding mortgage balance. If you have not named a beneficiary, the property will be distributed according to the laws of intestacy in your state. It is recommended to consult with an attorney or financial advisor to understand the specifics in your situation.
This is not legal advice. Please contact a licensed attorney.