Guide / Mortgage after death
What happens to the mortgage when the owner dies in Georgia?
Short version: federal law protects you. The bank cannot call the loan due just because the borrower died — as long as you keep paying. Long version below, with exactly what to say when you call the mortgage servicer.
The federal law: Garn-St. Germain.
The Garn-St. Germain Depository Institutions Act of 1982 contains a quiet provision that matters enormously to inheriting families. When property transfers because of the death of the owner, the lender cannot accelerate the loan (demand the full balance) under the standard due-on-sale clause — provided the property goes to a relative who occupies it, or to a co-borrower, joint tenant, spouse, or certain trusts.
In practice: the mortgage continues at the original terms. The rate doesn't change. You can keep making payments under the deceased's loan number while probate sorts out the title.
What to actually say when you call the servicer.
The first call is the most important call. Mortgage servicers have death notification departments, but their first instinct is to flag the account — sometimes freezing autopay or insurance escrow. Keep it tight:
1. Identify yourself as an heir.
Not as the new owner. You aren't the owner yet — probate hasn't closed. Use “successor in interest under Garn-St. Germain.”
2. Confirm the loan stays current.
Ask them to confirm in writing that the loan will continue at the existing terms and that payments will not be returned.
3. Get the “successor in interest” package.
Federal regulation (CFPB Rule 12 CFR § 1024.36) requires servicers to send a form letting you formally claim successor-in-interest status. That status gives you account access, statements, and the right to apply for loss mitigation if needed — without taking on the loan personally.
Keep the payments current. Always.
A missed mortgage payment on a house in probate is the most expensive mistake a family makes.
Foreclosure proceedings can begin after 90 days delinquent. Once started, they're hard to stop — even though the property is technically still in the estate. We've seen families lose six-figure equity over a $1,800 monthly payment that fell through the cracks while siblings were arguing.
If the deceased had auto-pay from their personal bank account, that may stop the moment the bank learns of the death. Switch payments to a family member temporarily, even if reimbursement gets sorted out later from the estate.
What about reverse mortgages?
Different rules. A reverse mortgage (HECM) does become due when the borrower dies. The estate has either 6 months (extendable to 12) to either pay off the balance, refinance into a traditional mortgage, sell the home, or deed-in-lieu surrender. Heirs can typically purchase the home for 95% of appraised value, which is sometimes less than the outstanding balance — worth knowing before you assume there's no equity.
What about home equity lines (HELOC)?
Same protection as a first mortgage under Garn-St. Germain. The lender cannot call the balance due solely because of death. But the line of credit feature typically freezes — no further draws — the moment the borrower's death is recorded. Plan accordingly if the family was relying on HELOC access for estate expenses.
Need the script for the servicer call?
We'll walk you through it on the 15-minute consultation — in real time if you want. Free. No script we're reading from, no upsell.
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