Following the death of a relative, the last thing you are expecting is to receive calls from a debt collector asking you to pay your loved one's outstanding mortgage repayments. Your loved one's mortgage is not written off when they die and this means that while debt collectors are prohibited from pestering you, they are entitled to attempt to recoup any outstanding debt.
When your loved one's estate fails to cover the balance of the mortgage, the lender can sell the property to recoup any outstanding money. A mortgage is therefore associated with the property itself, not your loved one. If the value of your loved one's estate fails to cover the debt, then the debt will typically remain unpaid. However, it is essential to be aware that creditors can completely deplete your relative's estate, leaving nothing for the heirs.
If a debt collector contacts you regarding paying for the debts of a deceased loved one, you should provide them with details of the executor of the will. If your loved one has not left a will, you should provide them with details of the personal representative (administrator). To be safe, you should not provide a debt collector with your own personal information as you do not know who you are dealing with and could end up becoming the victim of a crime. You are not required to talk with a debt collector regarding the debts of your deceased relative. However, if you are the executor or personal representative, you may wish to consult with them to determine the ways in which you can resolve the debts.
If you wish to prevent a debt collector from contacting you concerning the debts of your decreased relative, you will need to inform them in writing by sending them a certified, return-receipt requested letter. Once the debt collector receives your instructions, they may contact you to inform you that they will not make further contact and/or inform you that they plan to take legal action. It is important to remember that while the debt collector may be prohibited from contacting you, they can still sue the estate of your relative or take legal action against you if you are the executor or personal representative.
If you are caught up in a dispute over your responsibility for the debts of a deceased loved one, you should consult a trained attorney in the state in which your loved one's will has been filed.
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