If my grandmother co-signed a mortgage loan for me but now she has passed away, does my mortgage affect her estate in any way?

UPDATED: Dec 27, 2014

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If my grandmother co-signed a mortgage loan for me but now she has passed away, does my mortgage affect her estate in any way?

Someone said that I have to pay off the mortgage before they can settle her estate. She did not put any liens against any of her property when she co-signed. Do I have to refinance my house?

Asked on December 27, 2014 under Estate Planning, Illinois


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I am so sorry for your loss.  What would happen is that the estate would take the place of your Grandmother on the loan documents.  So long as you keep paying the loan and do not default you will be fine.  But if you default the bank has the right to go after both you and the assets of the estate.  So the Executor or Administrator of the estate may not want to keep the estate open for the life of your loan.  You may be forced to refinance or maybe the estate would have you execute a hold harmless agreement, although the bank is not bound by that.  I would speak with some one in your area as to your options.  Good luck.

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