A home mortgage still stands in the event of a borrower’s death, and a lender can foreclose on a property if payments are not made. But there are measures you can take to ensure the well-being of your estate and your heirs.
According to NerdWallet’s Michael Burge, a co-borrower, such as a spouse, or a co-signer could step up to the task of paying your mortgage if you die. If you have neither, designating a beneficiary is also an option. If your heirs are young children, or don’t think your beneficiaries could make the payments, you can also take mortgage protection insurance, which would pay off the mortgage lender in full, or life insurance, which would go directly to your heirs.
The most important thing you should do, according to Burge, is make a legally binding will or trust that clearly designates an heir to your property. This would make it clear who owns the home and inherits your property – unlike the musician Prince, whose relatives are at war over his estate in the absence of a will or trust.