When you pass away before paying off the mortgage on your property, the lender naturally retains the right to seek repayments on the full loan amount.
It’s likely that you own your home as a joint tenant with your spouse or partner. In this case, the property bypasses your estate and all obligations (including loan repayments) revert to the surviving joint tenant. This person will become the owner of the property, and take over full responsibility for the mortgage payment to the bank.
In all other scenarios, the executor of the will must find a way to pay off the debt using the estate otherwise the house may need to be sold. This can be done by using any available funds within the estate, or a Beneficiary inherits the house and takes over future mortgage payments.
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