Specialized Situation
Deceased Borrower & Successor in Interest
When a borrower dies, the mortgage does not disappear. A surviving spouse, heir, or beneficiary who acquires an ownership interest may be confirmed as a successor in interest, which unlocks the right to receive information and to apply for loss mitigation even without assuming the note.
When the person on the loan has passed away
What you need to know
- Federal servicing rules require servicers to have policies for promptly identifying and communicating with potential successors in interest.
- Once confirmed, a successor is generally treated as the borrower for servicing and loss mitigation purposes.
- Confirmation requires documents showing both the death and your ownership interest, such as a deed, trust instrument, or probate order.
- California transfer-on-death deeds, joint tenancy, and community property with right of survivorship can transfer title outside probate.
- Do not stop communicating with the servicer while status is pending. Foreclosure timelines continue to run.
Successor in Interest Checklist
Confirmation as a successor in interest unlocks your right to information and to apply.
- 1Certified death certificate obtained
- 2Document establishing your ownership interest located or recorded
- 3Will, trust, or letters of administration obtained if probate is open
- 4Written request for successor-in-interest confirmation sent to the servicer
- 5Government-issued photo ID provided
- 6Confirmation of status obtained in writing
- 7Loss mitigation application submitted once confirmed
- 8Foreclosure timeline verified with the trustee in parallel