The mortgage doesn't disappear when a parent passes away, but the lender generally can't demand that the full balance be paid right away just because the house went to a family member.
Here's what families in West Windsor should know:
Federal law protects relatives. Most mortgages have a "due-on-sale" clause, but the Garn-St Germain Act of 1982 blocks lenders from using it when a home passes to a relative after the borrower's death.
You have rights as a successor. Since 2018, federal servicing rules require the loan servicer to identify heirs who now have an interest in the home and treat them much like borrowers. That means you can get account information and apply for help if payments are a problem.
Call the servicer early. Have the death certificate ready and ask what they need to confirm you as a successor in interest. Write down who you spoke with and when.
Keep the payments current if you can. Taxes, insurance and the monthly payment still come due while the estate is being settled. Falling behind narrows your choices.
If the family sells, the mortgage is paid off at closing. The balance comes out of the sale proceeds, and the rest goes to the estate.
Get the right advisors involved. An estate attorney can explain who has authority to sign and when the house can be sold.
West Windsor families also have practical work to do before a sale. The township's curbside pickup takes only one to two bulk items per week, so clearing out a full house usually means a dumpster, a junk hauler or a donation plan.
Fred Gomberg works with Berkshire Hathaway HomeServices Fox & Roach in Princeton and helps families sell a parent's home with patience and a clear plan, often while some family members live out of state. If you're not sure where to start, Fred is glad to walk you through the steps with no obligation.
