My father co-signed for my mortgage & has now passed away, I am his only heir, will I have to refinance? I have no problem making the payment, but I could not qualify on my own.
What happens when a co-signer on a mortgage passes away?
byu/Jbell203 inpersonalfinance
Posted by Jbell203
7 Comments
Your mortgage company would have the correct answer.
Since the loan is already issued nothing is likely to happen here, especially if you keep making payments.
Did you google “mortgage cosigner dies”? google tells me “If a co-signer dies on a mortgage, the surviving borrower generally remains fully responsible for the debt, and the loan terms usually stay the same. The lender cannot accelerate the loan solely due to the death, but the estate of the deceased may be liable”
For anything more concrete than that, follow u/hopingtothrive’s advice and call them up.
Gotta check with your lender. Typically you become solely responsible or less likely, they’ll declare it default and you’re immediately responsible for the full remaining balance or have to refinance
Nothing happens, as long as you keep paying the mortgage
You become solely responsible for the mortgage.
Depends on the lender. My partner and I were on a mortgage together and I just continue paying after she died. I did notify the lender of course, but it wasn’t a big deal. Since you are his only heir and the joint mortgage holder, the lender may be inclined to have you continue paying without needing to do anything. In fact I was told that there is a law where direct relatives – parent – child – that allowed mortgage to continue on. If your lender pushes back, you may want to consult an elder/estate attorney
I’d probably just keep paying. How much longer? I’m sorry for your loss.