Detailed Answer — How to take over a mortgage after a parent’s death in Arkansas

If your father died owning a home with a mortgage, you cannot simply “take over” the loan automatically in all situations. What you must do depends on (1) how title to the home is held, (2) the mortgage and note language, (3) whether the estate goes through probate, and (4) the mortgage lender’s policies. Below are the typical steps and legal considerations under Arkansas law and federal rules that commonly apply.

1. Check who owns the house now (title and survivorship)

Start by reviewing the deed. Common possibilities:

• Sole ownership in your father’s name — the property usually passes through probate to heirs or devisees.
• Joint tenancy with right of survivorship or tenancy by the entirety — the surviving joint owner(s) usually receive title automatically, outside probate.
• Property held in a revocable living trust — the successor trustee manages and can transfer title per the trust.

If title passes outside probate (joint owner or trust), you may hold title for the property, but the mortgage lien remains attached until paid or removed by refinance or lender action.

2. Identify the mortgage documents and note: assumption vs. refinance

Find the promissory note and deed of trust/mortgage. The note is the contract that creates the borrower’s obligation; the deed of trust creates the lender’s lien on the property. Key questions:

• Does the lender allow a formal assumption of the mortgage? Some loans permit assumption with lender approval.
• Is there a due-on-sale clause? Many mortgages let the lender accelerate the loan if title transfers. Federal law, however, limits enforcement of due-on-sale clauses in certain transfers on death. See the federal statute that limits enforcement of due-on-sale clauses on transfers to relatives upon the borrower’s death: 12 U.S.C. § 1701j-3 (Garn–St. Germain). You can read the federal language here: https://www.govinfo.gov/content/pkg/USCODE-2018-title12/html/USCODE-2018-title12-chap14-subchapI-sec1701j-3.htm

3. Contact the lender promptly

Contact the mortgage servicer, explain that the borrower died, and ask what documentation they need. Commonly requested items include a certified death certificate and proof of your authority to act for the estate (letters testamentary or letters of administration if the estate is in probate). The lender will tell you whether they permit assumption, require refinance, or expect the estate to make payments.

4. If the estate must be probated, get authority to act for the estate

If the property does not transfer automatically, the estate will likely go through probate so title can be transferred to the heirs or purchaser. In that case you (or the executor named in the will) must be appointed by the circuit court as the personal representative (executor or administrator) to handle estate assets, pay debts, and transfer title. For general information on Arkansas probate courts and procedures, start at the Arkansas Judiciary site: https://www.arcourts.gov/ (search Probate/Decedents’ Estates pages on that site or consult a probate attorney).

5. Practical options once you have authority

• Assume the mortgage (if lender permits). The lender may require a formal assumption agreement and a credit review. If approved, you step into the loan obligations.
• Refinance the loan in your name. If you qualify for a refinance, you can pay off the decedent’s loan and take a new mortgage in your name alone. This removes the estate’s or deceased borrower’s liability from the loan.
• Have the estate pay off the loan. If the estate has sufficient funds or life insurance proceeds, the personal representative can pay off the mortgage and transfer clear title to heirs.
• Sell the property. The estate can sell the house, pay mortgage and expenses from sale proceeds, and distribute the remainder to heirs.

6. If payments stop and foreclosure is a risk

If mortgage payments cease, the lender may begin foreclosure under Arkansas foreclosure procedures. Acting quickly — contacting the servicer, exploring short-term payment plans, or seeking a loan modification — reduces the risk of foreclosure. If you receive a foreclosure notice, contact a lawyer immediately.

7. Taxes, homestead, and exemptions

Other considerations such as estate tax, property tax, and homestead rights may affect priorities for paying the mortgage or keeping the house. An Arkansas probate attorney or tax advisor can explain how these rules apply to your family’s situation.

Summary checklist

1. Locate deed, mortgage note, and will (if any).
2. Obtain certified copy(s) of the death certificate.
3. Contact the mortgage servicer and ask what they require to continue payments, assume the loan, or refinance.
4. If necessary, open probate and get letters testamentary/administration from the circuit court.
5. Decide whether to assume, refinance, pay off, or sell. Consult a lawyer and lender for help with paperwork.

Because procedures and lender policies vary, and because probate and property matters can be complex, most people in this position consult an Arkansas probate or real estate attorney for help with the transfer of title and loan paperwork.

Helpful Hints

• Keep calm and document everything. Log every call with the lender: date, name of representative, and what they told you.
• Gather documents: death certificate, will, deed, mortgage statement, tax bills, insurance policy, and mail from the mortgage servicer.
• Ask the lender for a written list of required documents to assume the loan or keep the loan in place.
• Ask whether the loan is assumable and whether the lender will run a credit check or require income documentation.
• Be aware of the federal limitation on enforcing due-on-sale clauses on death transfers to relatives (12 U.S.C. § 1701j-3). Link: https://www.govinfo.gov/content/pkg/USCODE-2018-title12/html/USCODE-2018-title12-chap14-subchapI-sec1701j-3.htm
• If the estate is small and the home’s value is modest, ask a probate attorney whether a simplified administration or affidavit procedure is available under Arkansas law (the local probate court or an attorney can advise on available streamlined options).
• If you plan to refinance, shop rates early. Rates and loan terms will affect whether refinance is a good option versus assuming the loan.
• If you are unsure about your rights or the lender is uncooperative, consult a licensed Arkansas attorney who practices probate or real estate law.

Useful starting links:

• Arkansas Legislature home (Arkansas Code and statutes): https://www.arkleg.state.ar.us/
• Arkansas Courts (information on probate and circuit courts): https://www.arcourts.gov/
• Federal statute on enforcement limits of due-on-sale clauses (Garn–St. Germain): https://www.govinfo.gov/content/pkg/USCODE-2018-title12/html/USCODE-2018-title12-chap14-subchapI-sec1701j-3.htm

Final note: Courts and lenders each have their own procedures. The precise steps you must take depend on how title is held, whether the loan allows an assumption, and whether the estate proceeds through probate. A consultation with an Arkansas probate or real estate attorney will clarify your specific next steps.