What Happens to Me When My Mother Passes Away With Debt?


Dear Steve,

My elderly mother and I are both named on our mortgage.($80,000) She owns the car. She has about $25,000 in credit card debt and $2,000 for a personal. loan.

I would like to know what happens to me when my mother passes away leaving a large amount of credit card debt and a mortgage. I am also named as a joint owner of the mortgage. I have no assets.



Dear Gregory,

You should verify if you are a joint owner of the property and also a co-borrower on the mortgage. You can be on one and not the other. It’s an important technicality.

So much of this stuff is determined by little differences in state laws but in general, if your mother were to pass away, hopefully, she has a will. As the executor of the estate, you would be required to continue to make the payments on the mortgage until the will was processed through probate.

Probate is a process where the assets and liabilities of the deceased person are dealt with.

Depending on the terms of the mortgage, even if you are not a co-borrower, you may still be able to assume the mortgage. Otherwise, you’d have to sell the property to pay off the mortgage or get a new loan to pay off the old mortgage.

The credit card debt and unsecured personal loans would not be able to go further than the estate to attempt to recover some or all of what is owed on it.

The bottom line here is you need to prepare now for what your income situation would be when your mother passes. Would you be able to afford the mortgage or qualify for a new mortgage based on your income?

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

If you have a credit or debt question you’d like to ask, just click here and ask away.

This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

The post What Happens to Me When My Mother Passes Away With Debt? appeared first on Personal Finance Syndication Network.

About Damon Day

As a Debt Coach and a Financial Advocate, I have saved my clients Millions of Dollars by exposing the debt relief scams that other consumers fall victim to. I work directly for my clients to create custom debt relief strategies based on their own unique circumstances. Consumers who speak with me first, come out far ahead of those who don't, every single time. Guaranteed. +Damon Day