Navigating a Borrower’s Passing: How to Notify the Mortgage Lender Quickly and Correctly

Losing a loved one is hard enough without tackling paperwork, yet notifying the mortgage company quickly protects the estate, surviving co‑borrowers, and the home itself. Here’s a concise game plan to follow when a borrower passes away.

1. Gather essential documents. Secure an official death certificate, a copy of the mortgage statement, and any power‑of‑attorney or executor paperwork. Having these ready prevents delays when you call the servicer.

2. Contact the servicer within 30 days. Use the customer‑service number on the statement and ask for the “deceased borrower” or “estates” department. Provide the loan number, date of death, and your legal relationship to the borrower.

3. Submit written notice. Most companies require a letter that includes the deceased’s full name, property address, loan number, and your contact details. Enclose the death certificate and proof of executorship or next‑of‑kin status.

4. Request a “successor in interest” review. If a surviving spouse, partner, or heir plans to keep the property, ask the servicer to recognize them as a successor. This designation lets the new party receive statements, apply for modifications, or refinance without triggering the due‑on‑sale clause.

5. Keep payments current. Interest and late fees continue to accrue, so use estate funds or personal resources to cover monthly installments until the loan is resolved—whether through assumption, refinance, or sale.

6. Document every conversation. Record dates, employee names, and promised actions. A clear paper trail can resolve disputes and prove compliance with lender timelines.

Taking these steps swiftly helps preserve credit, avoid foreclosure, and give heirs the breathing room they need to decide the home’s future.

For more detailed guidance, consult your attorney and coordinate directly with the loan’s mortgage lender to ensure a smooth transition. Prompt, organized communication today can save months of stress tomorrow and honor the borrower’s legacy responsibly.