Based on a Federal Reserve Bank of New York research, Americans owe $12.35 trillion on house debt, which is an incredible sum that accounts for 72.4% of the total consumer debt in the nation. Due to the substantial debt associated with mortgages that last for decades, numerous homeowners regrettably pass early before receiving the deed to their homes.
To facilitate the estate planning process for surviving family members, CNBC Select provides information on what occurs to an unpaid mortgage debtor’s estate, including whether or not the debtor’s descendants are liable for any outstanding payments.
The death of a homeowner does not erase mortgage debt. An individual’s debts and possessions, especially any mortgage, are incorporated into their estate upon death.
The remaining borrower must keep up with payments if there is a co-signer on the mortgage. This is the sole circumstance in which a particular survivor must pay their mortgage.