Detailed answer — what to do under Colorado law

Start by understanding two separate legal pieces: (1) who owns the house after your father’s death, and (2) who is legally obligated on the mortgage note. The property title and the promissory note control different things: title decides ownership; the note controls who is personally liable for the loan.

Step 1 — Confirm how the property passes (title matters)

• If the house was owned jointly with right of survivorship (joint tenancy or tenancy by the entirety), the surviving joint owner typically becomes the sole owner automatically.
• If the house had a valid Colorado Transfer-on-Death (TOD) or beneficiary deed, the named beneficiary typically receives title outside probate when the death is recorded.
• If the house was owned solely by your father and there is a will or no will, title usually passes through probate to whoever inherits under the will or Colorado intestacy rules.

To see Colorado statutes covering probate and property transfer generally, see the Colorado Revised Statutes and the Colorado courts’ probate information: https://leg.colorado.gov/statutes and https://www.courts.state.co.us/Forms/Forms_List.cfm?Form_Type_ID=23

Step 2 — Understand how the mortgage and note work

The mortgage lien stays attached to the house until paid or released, even if ownership changes. But who is personally liable on the promissory note depends on who signed it:

• If your father alone signed the note, you generally will not be personally liable for the loan unless you sign an assumption or refinance in your name.
• If you become the owner (by survivorship, TOD deed, probate, etc.) and you keep making the mortgage payments, you can protect your interest in the home but you may still not be personally obligated on the loan.

Step 3 — Know the lender’s rights and the federal limit on “due-on-sale” enforcement

Lenders often include a “due-on-sale” clause that lets them accelerate the loan if the property transfers. But federal law limits when lenders can enforce that clause. Under federal law (the Garn–St. Germain Depository Institutions Act), a lender generally cannot enforce a due-on-sale clause when a property transfers by devise, descent, or operation of law at the borrower’s death to a relative. You can read the federal rule here: https://www.govinfo.gov/app/details/USCODE-2018-title12/USCODE-2018-title12-chap13-subchapI-sec1701j-3

That federal protection often means a lender cannot automatically demand full repayment simply because the borrower died and left the house to a relative. However, lenders still must be notified and can require proof of status as an heir or personal representative and may insist on a loan assumption, modification, or refinance to change who is personally liable.

Step 4 — Practical options in Colorado

• Assume the mortgage: Some loans are assumable with lender approval. Lender will require an application, credit review, and possibly an assumption fee. If approved, you become personally responsible under the note.
• Refinance: Refinance the loan into your name if you qualify. This removes the decedent’s liability and makes you the borrower.
• Keep paying without assuming: If title passes to you but you never sign the note, you can keep making payments to avoid foreclosure. The lien remains on the property, and if you later sell, the lender must be paid at closing.
• Sell the property: Use sale proceeds to pay off the mortgage. If the home is in probate, the personal representative handles the sale under Colorado probate rules.
• Let the estate handle it: If the house is part of an estate, the personal representative can use estate funds to keep paying, refinance, sell, or negotiate with the lender as part of estate administration.

Step 5 — Concrete steps to take right now

1. Locate the deed and mortgage documents (title company, original loan paperwork, county recorder).
2. Obtain certified copies of the death certificate.
3. Determine whether the property transfers outside probate (joint tenancy, TOD deed) or needs probate.
4. Contact the lender’s loss-mitigation or borrower-services department. Tell them the borrower died and ask what they require to review assumption, modification, or refinance options.
5. If probate is required, talk to the appointed personal representative (executor) about estate options. If no one is appointed yet, consider opening probate so the estate can legally manage the asset.
6. Gather proof of income, assets, and credit information (lender will want it if you ask to assume or refinance).

Documents the lender will usually ask for

• Death certificate
• Will and/or probate appointment papers (letters testamentary or letters of administration)
• Proof of ownership (deed, county records)
• Personal financial documentation (pay stubs, bank statements, tax returns)
• Photo ID and Social Security number

Special loan programs

VA loans and some FHA loans have special assumption rules. For example, VA loans may be assumable by an eligible borrower under VA rules (with VA approval). If the loan is insured or originated by a government program, ask the lender about program-specific procedures.

When you may need a probate court or other Colorado-specific action

If the property is titled solely in your father’s name and no TOD deed or joint owner exists, Colorado probate may be necessary to transfer legal title to heirs or a purchaser. The personal representative can then deal with the mortgage as part of estate administration. For probate forms and information, see Colorado courts: https://www.courts.state.co.us/Forms/Forms_List.cfm?Form_Type_ID=23

Bottom line: You can often keep the house by continuing payments, assuming the loan with lender approval, or refinancing. You do not automatically become personally liable on your father’s note simply by inheriting title; to be personally responsible you must assume the loan or refinance into your name.

For Colorado statutes and resources about probate and property transfers, start at the Colorado Revised Statutes: https://leg.colorado.gov/statutes and the Colorado Department of Regulatory Agencies for real estate information: https://dora.colorado.gov/real-estate

Helpful Hints

• Get certified death certificates early — lenders and the county recorder will ask for them.
• Locate the deed. Ownership language (joint tenancy, TOD deed, sole owner) determines whether probate is required.
• Call the lender quickly. If you can show willingness and ability to pay, they are often willing to discuss options to avoid foreclosure.
• Keep making mortgage payments while you sort title and probate. Missed payments create default, fees, and potential foreclosure risk.
• If you want to live in the house long-term, plan to assume or refinance rather than rely on informal payment arrangements.
• Consider contacting a Colorado probate or real estate attorney if title is unclear, the lender threatens acceleration, or estate administration is contested.
• Check for special loan rules (VA, FHA) that can make assumptions easier for eligible borrowers.